Thanks, my test worked which I did do in a process.
I did get an error when I had the rule in the BO.
So the process works like this:
Process A calls process B, process B calls process C, if condition is not met process C calls process B which calls process C again and the loop continues until the condition is met.
I was able to repeat this loop 10 times and all the records were created and the parent was updated correctly as well. 😃