My Flow checks birthdays on contacts with particular atrributes, and alerts staff if the contact's birthday is 7 days away. I identified the object and conditions in the start block, which states, "To have the scheduled flow run for a batch of records, specify the object and the conditions that each record must meet. A flow interview runs for each record in the batch." No collection variable is created, so there seems to be no need for (or possibility of) a loop. The second element in the Flow is a decision -- "Is the birthday 7 days away?"
When I debug, it shows only one record found, and that record doesn't meet the decision requirements to proceed. I know there are at least a dozen qualifying records and I preset one with a birthday 7 days away, so I could test the rest of the flow. The debug details show just one record assessed.
When I adjust the conditions to find just the record with the birthday 7 days away, it is found, and the flow proceeds with the next step (get email of primary solicitor). So does a batch run from the trigger conditions even work?
My other scheduled flows skip the start object and conditions, start with a Get Records, and then loop the collection through the needed steps. It's far more complex, but maybe necessary?
This is working as expected. Debugging a scheduled flow will only find one record because by putting the criteria into the start element you have met the requirements "to have the flow run for a batch of records". Salesforce runs an individual flow interview for each record that meets the criteria and handles the batching on the back end, instead of you having to handle bulkification within the flow yourself. There's no need for you to build a more complex flow with get records and loops for this use case but I get why this is hard to wrap your brain around. Scheduled flows are essentially the exception to the rule of flow building. To "test" it further since your debug works, set multiple contacts to have a birthday today, schedule the flow to run about 5 minutes in the future, activate, and wait for the flow to run 'in the wild'.