I've been playing around with LTI publication and consumption lately and here is what I noticed.
When Moodle is an LTI provider, it will display contents using an embedded template (i.e. with no navigation whatsoever). This applies only for users with the student role on the consumer LMS, not for teachers (and higher roles) who will see the full navigation.
To disable the navigation for everyone, 'force_embed=1' must be added as a custom parameter on the consumer system. I could confirm on the LTI test tools: http://lti.tools/saltire
I couldn't find a way to force this form the provider Moodle, which is a pity in my opinion.