where $x,y,v$ are independent variables.
Basically, I am confused with the fact that a partial derivatives holds all variables constant, other than the variable with which we are taking the derivative, but here we are taking the derivative with respect to a function of other variables.
In other words, what is being held constant in $\frac{\partial f}{\partial z}$. Perhaps this partial derivative is telling us what the change would be if we could change $z$ without changing $x$ and $v$?
The function $f$ doesn't "know" that its third argument depends on other variables - all it knows is that it takes three arguments and gives a number back. $\frac{\partial f}{\partial z}$ is a "question" you're asking $f$: "if your third argument were to change without the other two changing, how would your output change?" That question is about what could go into $f$, not about what is actually going into $f$.