Enable the workflow to automatically start when a new list-item is created
The data of the repeating section within the form-data is stored as XML and thus is must be XML-encoded to be properly stored in the XML of the formdata. So before accessing the data of the repeated section you have to decode the data. I added an extra step for more clarity (although this could be done in a single step within the query).
Finally the create-item statement was missing an extra "#", as the delimiter is not just ";" but it's ";#". So the value of the Lookup-column should look like this:
Find attached an exported version of the fixed workflow.