Publishing all data (even in loops) to one sheet

This is the expected behavior. Repeats are a powerful tool but with that power comes a necessary increased complexity in the output data structure. Please see the "Tip" box in the section of the docs on Repeating questions for 2 alternative form design options: https://docs.getodk.org/form-logic/#repeats

Also, if you have not seen the announcement, please note the upcoming changes to the ODK/ Google Sheets functionality: