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A simpler duplication shows the issue is below.
It appears the issue is is not related to the "for loop" - it can be duplicated just writing code inside the eshell { .. } block.
To duplicate, please create a file ccc.el.gz - something the gzip does not fail on.
Then, On the eshell prompt, enter the following code:
$ export aaa="This is contents of aaa"
{
# create a variable in this block
export bbb=$aaa;
echo "Before gzip: aaa=$aaa"
echo "Before gzip: bbb=$bbb";
gzip --decompress ccc.el.gz;
echo "After gzip: aaa=$aaa"
echo "After gzip: bbb=$bbb";
}
Before gzip: aaa=This is contents of aaa
Before gzip: bbb=This is contents of aaa
After gzip: aaa=This is contents of aaa
After gzip: bbb=nil
$
Same bug: After the call to non-elisp program, /usr/bin/gzip, a previously exported variable bbb (exported inside the block) is nullified.
Thanks