P365 does not support ERS being enabled for 2 projects under 1 client so if that is your requirement you will need to request a second client to create a project in (If you do require this you will need to log a request with support as a backend change is required for this to work).
To resolve the looping issue you will need to the following
Disable ERS in all projects.
Wait 30 minutes for the system to remove the ERS rules etc from the tenants.
Check the tenants for any ERS rules etc and manually remove any that the system could not remove.
Wait one hour for the system to fully disable ERS.
Enable ERS for the required project.
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