this is not a bug. You’re supposed to put the alternative after the repeat part not inside, so \repeat volta 2 { ... } \alternative { ... }. The way you have put it the \alternative ... is used as alternatives for the \repeat unfold (as it is placed after that one), so after the first repeat you get the first alternative, after the second repeat the second alternative, which is exactly what you are seeing here.
Thanks for the explanation. Apparently I misread the documentation. Kind regards, Michael