Likely the clockspring, but possibly the airbag. You can substitute a resistor in the clockspring's airbag circuit (at the clockspring connector to the airbag) to determine if it's a circuit problem (clockspring) or the airbag itself.
I'd recommend disconnecting the battery, discharging the electrical system, and pulling the airbag. Remove and inspect the connectors that go to the airbag and use some electrical contact cleaner (like DeOxit) on them, reassemble, and check again for codes. While you have it apart you could test the circuit with a resistor, bypassing the airbag.
For about 8 days, I had no Service Airbag warning on, but when I returned home, the next day it showed up again.
Today I pulled the steering wheel, removed the clock spring, and I ohm tested the 4 wires from the two airbag connectors back to the module inside the LH of the dash, all tested .4-.5 ohms...no variations when turning the clock spring.
I also tested the brown and black 2-wire connector and the same result.
I don't see any signs of chafing or damaged wires.
What specifically is "Loop 1"? Is this inside the airbag?
I don't have any experience with checking the resistance of an inflator, I don't want to mess with it unless I can safely measure it per the service manual.
The airbag recall was performed back in Feb 2021, not sure if that will help my case. I spoke with the dealer and they sounded adamant that the warning light would not be caused by the inflator itself.... I mean of there's resistance in the inflator one would think it's plausible but I don't know.