Running patterns X amount of times

I guess that you based your code on something existing that had a fadeall() function defined. So find that back and copy the function into your sketch.

It doesn't if you remove pattern1 and the one pattern that you have is pattern2.

Look at pattern1(); the first line in that function declares the hue variable. That variable is only known inside the function. You don't have that line in pattern2() and hence you get the error.