I am sorry to disagree with my collegues, but your cursor progression was correct.  If you comment out references to your tables and put simple statements in instead you will see that the loop generates output for each value:


DECLARE @profileName nvarchar(200);
DECLARE @hierarchyFlag tinyint;
DECLARE @db_cursor CURSOR;
DECLARE @ProfileNameTable TABLE (ProfileName nvarchar(100));
INSERT INTO @ProfileNameTable (ProfileName)
/*SELECT CASE WHEN Code like '%S%' AND ProfileName NOT LIKE '%STUDENT%' THEN CONCAT(LTRIM(RTRIM(ProfileName)), '_STUDENT')
ELSE LTRIM(RTRIM(ProfileName)) END AS ProfileName FROM [dbo].[Users_Exceptions] WHERE replace(ltrim(replace(Code, '0', ' ')), ' ', '0') = @Code AND ProfileName IS NOT NULL
UNION
SELECT ProfileName AS ProfileName FROM [dbo].[vProfile] WHERE replace(ltrim(replace(Code, '0', ' ')), ' ', '0') = @Code AND ProfileName IS NOT NULL AND OraUser IS NOT NULL*/
VALUES ('Profile 1'), ('Profile 2');
/*
SET @db_cursor = CURSOR FOR
SELECT a.ProfileName FROM
    (SELECT HibisProfileName AS ProfileName FROM [dbo].[vSB_IdM_Hibis_Profile] WHERE replace(ltrim(replace(Code, '0', ' ')), ' ', '0') = @Code AND HibisProfileName IS NOT NULL AND OraUser IS NOT NULL
   UNION
   SELECT CASE WHEN Code like '%S%' AND ProfileName NOT LIKE '%STUDENT%' THEN CONCAT(LTRIM(RTRIM(ProfileName)), '_STUDENT')
        ELSE LTRIM(RTRIM(ProfileName)) END AS ProfileName FROM [dbo].[SB_Hibis_Users_Exceptions] WHERE replace(ltrim(replace(Code, '0', ' ')), ' ', '0') = @Code AND ProfileName IS NOT NULL) a;
*/
SET @db_cursor  = CURSOR FOR
SELECT ProfileName FROM @ProfileNameTable

OPEN @db_cursor;
FETCH NEXT FROM @db_cursor INTO @profileName;
WHILE @@FETCH_STATUS = 0
BEGIN
   PRINT @profileName
/*    SET @hierarchyFlag = (SELECT TOP 1 HierarchyFlag FROM [dbo].[vSB_IdM_Hibis_Profile] WHERE ltrim(rtrim(HibisProfileName)) = @profileName AND HierarchyFlag IS NOT NULL);
   IF (@hierarchyFlag = 1)
        BEGIN
          SELECT 'insert into ban_nad (OP,NADREJEN,VODJA) VALUES (''' +replace(ltrim(replace(a.Code, '0', ' ')), ' ', '0')+''',''' +replace(ltrim(replace(b.Code, '0', ' ')), ' ', '0')+''',''0'');'
          FROM [dbo].[vProfile] a, [dbo].[vProfile] b
          WHERE  a.Code <> b.Code AND ISNULL(@profileName, 'A') = ISNULL(b.HibisProfileName, 'A')  AND replace(ltrim(replace(a.Code, '0', ' ')), ' ', '0') = @Code
          UNION
            SELECT 'insert into ban_nad (OP,NADREJEN,VODJA) VALUES (''' +replace(ltrim(replace(b.Code, '0', ' ')), ' ', '0')+''',''' +replace(ltrim(replace(a.code, '0', ' ')), ' ', '0')+''',''0'');'
         FROM [dbo].[vProfile] a, [dbo].[vProfile] b
          WHERE a.Code <> b.Code AND ISNULL(@profileName, 'A') = ISNULL(b.HibisProfileName, 'A')  AND replace(ltrim(replace(a.Code, '0', ' ')), ' ', '0') = @Code
          UNION
          SELECT 'insert into ban_nad (OP,NADREJEN,VODJA) VALUES (''' +replace(ltrim(replace(dv.Code, '0', ' ')), ' ', '0')+''',null,''1'');'
          FROM [dbo].[vProfile] dv
          WHERE  replace(ltrim(replace(dv.Code, '0', ' ')), ' ', '0') = @Code
          UNION
          SELECT 'insert into ban_nad (OP,NADREJEN,VODJA) VALUES (''' +replace(ltrim(replace(b.OP, '0', ' ')), ' ', '0')+''',''' +replace(ltrim(replace(a.code, '0', ' ')), ' ', '0')+''',''0'');'
          FROM [dbo].[vProfile] a, [dbo].[Hierarchy_Ex] b
            WHERE ISNULL(@profileName, 'A') = ISNULL(b.PROFILENAME, 'B')  AND replace(ltrim(replace(a.Code, '0', ' ')), ' ', '0') = @Code
      END
  ELSE IF (@hierarchyFlag = 2)
        BEGIN
          SELECT 'insert into ban_nad (OP,NADREJEN,VODJA) VALUES (''' +replace(ltrim(replace(a.Code, '0', ' ')), ' ', '0')+''',''' +replace(ltrim(replace(b.Code, '0', ' ')), ' ', '0')+''',''0'');'
          FROM [dbo].[vProfile] a, [dbo].[vProfile] b
          WHERE a.Code <> b.Code AND ISNULL(@profileName, 'A') = CONCAT(ISNULL(b.HibisProfileName, 'A'), '_STUDENT')  AND replace(ltrim(replace(a.Code, '0', ' ')), ' ', '0') = @Code
          UNION
            SELECT 'insert into ban_nad (OP,NADREJEN,VODJA) VALUES (''' +replace(ltrim(replace(dv.Code, '0', ' ')), ' ', '0')+''',null,''1'');'
          FROM [dbo].[vSB_IdM_Hibis_Profile] dv
          WHERE  replace(ltrim(replace(dv.Code, '0', ' ')), ' ', '0') = @Code
          UNION
          SELECT 'insert into ban_nad (OP,NADREJEN,VODJA) VALUES (''' +replace(ltrim(replace(b.OP, '0', ' ')), ' ', '0')+''',''' +replace(ltrim(replace(a.code, '0', ' ')), ' ', '0')+''',''0'');'
          FROM [dbo].[vProfile] a, [dbo].[Hierarchy_Ex] b
          WHERE ISNULL(@profileName, 'A') = ISNULL(b.PROFILENAME, 'B')  AND replace(ltrim(replace(a.Code, '0', ' ')), ' ', '0') = @Code
      END
*/
  FETCH NEXT FROM @db_cursor INTO @profileName
END
CLOSE @db_cursor;
DEALLOCATE @db_cursor;