Quote:

Is there some aspect of the settings that has not been properly adjusted?



Yes. It's well explained in the help screen accessed through the Repeats dialogue.

At the moment, your second four bars are dead empty, and the arrangement is playing that same last chord over and over because it has nothing else to play.

To get chords into your repeated bars in the way you are working, you must check the box in the repeat dialog that reads "Generate (insert) New Bars". Do this when you are making a brand new repeat.