There are more discussions on the topic here
https://forum.inaturalist.org/t/fastest-way-to-split-observations-of-more-than-one-individual/6511
And even more in depth here.
https://forum.inaturalist.org/t/multiple-different-organisms-of-the-same-species/6684
And here
https://forum.inaturalist.org/t/what-is-an-observation/3367
Basically, separate records follows the letter of the inat law, and any user following those guidelines should be allowed to do so. If the ‘law’ is optimally designed is a totally different question.