You actually only have one test here. If you want to have multiple tests, you need to use something like this:

*** Settings ***
Test Template       Template Keyword
Test Teardown       Teardown All

*** Test Cases ***
Test using Template 1       Data1
Test using Template 2       Data2
Test using Template 3       Data3

I guess we could change --rerunfailed to be clever enough to only execute failed iterations if a test with a template contains multiple iterations. I personally don't think that's worth the effort because

• it would be a rather big change,
• I doubt running all iterations typically takes too much time,
• it's possible to make iterations independent tests like illustrated above, and
• the change could even cause backwards incompatibility problems.

I'm not totally against such change, though, so if someone else is interested to implement it (or to sponsor development) it could be added. If nobody shows interest, this issue will be closed.

No interest in over five years. Closing.