I also used the same ISO to upgrade from 22000.593 -> 22593 on a VM and didn't get the loop.
IDK what's going on but definitively a bug.
btw, on April 4th, MS released an update using a previous KB number (KB4023057) which is supposed to upgrade 22000.593 to 22000.647 but WU doesn't find it, do you know anything about this?
I think kb4023057 is always reused when they want to cleanup space for the next build it is not changing the build number.
KB4023057: Update for Windows Update Service components (microsoft.com)
As for 22000.647 was found referenced in some server, but not a released update. Maybe next Tuesday there will be the build update?
Windows 11 build 22000.647 - BetaWiki
This seems to be a mistake:
Select language for Update for Windows 11 - KB4023057 (22000.647) amd64 - UUP dump