I have a sphere with bounciness set to 1
The ball has no drag and uses gravity
It hits a platform, which has bounciness set to 1 and no friction
Yet, the ball bounces higher on every bounce, going to infinity. How is such a thing possible, when I have not given it any extra momentum?
The issue comes from the fact that physics in games happens in discrete frames, and that a moving object will be "inside" another at the frame where there is a collision. The physics engine then has to separate the objects before the next frame, and figure out how much energy to "bounce" with.
One of the steps to do this involves figuring out how much the objects overlap, and that's where this phantom extra energy is comin from. Less error in the overlap equals less error in the energy.
Don't fiddle with the bounciness; those are naive solutions, not to mention they sidestep the issue rather than solving it.
What you should do is to fix what's wrong with your collisions. That can be done a number of ways, the most appropriate/performant of which depends on each specific game: