I have an umbilical hernia and it seems like my penis retracts in towards my body as the hernia gets bigger. My hard on is still big,but it seems like when it’s soft it retracts more as the hernia gets bigger. Does this have an effect on the penis?

I can't see how something near your belly button is affecting your penis. Get your umblical hernia repaired, (where the intestine/tissue pokes through the abdominal wall), because it's dangerous if it becomes strangulated, then carry on obsessing about your penis.