Converting an xml to another xml using xsl and group by function

I have an xml that I need to parse to another xml, I tried to use the group by function, but it traverses just the first iteration

Here is the input XML
XML1
--------
<?xml version="1.0" encoding=utf-8"?>
<Resultsets>
      <Record>
                <App>SmokeTest </App>
                <Location>Germany</Location>
                <Division>Parts</Division>
                <Desk>Help</Desk>
                <Product>Bulldozer</Product>
                <Access>Variable</Access>
      </Record>
      <Record>  
                <App>SmokeTest </App>
               <Location>Germany</Location>
                <Division>Supplies</Division>
                <Desk>Help</Desk>
                <Product>Bulldozer</Product>
                <Access>Fixed</Access>
      </Record>
.
.
.
</Resultsets>

An this is the desired output

Location name "Germany">
     <Division name ="Parts">
         <Desk name ="Help">
            <Product name="XYZ>
                    <Permission name="Variable"></Permission>
                    <Permission name="Test"></Permission>
            </Product>
           <Product name="XYZ>
                    <Permission name="Variable"></Permission>
                    <Permission name="Test"></Permission>
            </Product>
         </Desk>
         <Desk name ="Supplies">
             <Product name="XYZ>
                    <Permission name="Variable"></Permission>
                    <Permission name="Test"></Permission>
            </Product>          
         </Desk>
      </Division>
     <Division name ="Parts">
         <Desk name ="Help">
             <Product name="XYZ>
                    <Permission name="Variable"></Permission>
                    <Permission name="Test"></Permission>
            </Product>
            </Desk>
         <Desk name ="Supplies">
             <Product name="XYZ>
                    <Permission name="Variable"></Permission>
                    <Permission name="Test"></Permission>
            </Product>
         </Desk>
      </Division>
</Location>

And this is what I have so far
<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform" version="2.0">
    <xsl:key name="loc-by-name" match="ResultSet1/*" use="LOCATION"/>
     
    <xsl:template match="/">
        <apps>
            <app>
                <xsl:apply-templates/>
            </app>
        </apps>
    </xsl:template>
    <xsl:template match="ResultSet1">
        <xsl:for-each-group select="*[generate-id() = generate-id(key('loc-by-name', LOCATION)[1])]" group-by="LOCATION">
            <xsl:sort data-type="text" select="LOCATION"/>
            <location name="{current-grouping-key()}">
            <xsl:for-each-group select="current-group()"  group-by="DIVISION">
                                          <xsl:sort data-type="text" select="DIVISION"/>                                          
                                          <division name="{current-grouping-key()}">
                                                            <xsl:for-each-group select="current-group()"  group-by="DESK">
                                                            <xsl:sort data-type="text" select="DESK"/>
                                                            <desk name="{current-grouping-key()}">
                                                                        <xsl:for-each-group select="current-group()"  group-by="PRODUCT">
                                                            <xsl:sort data-type="text" select="PRODUCT"/>
                                                            <product name="{current-grouping-key()}">
                                                            <xsl:for-each-group select="current-group()"  group-by="PERMISSION">
                                                            <xsl:sort data-type="text" select="PERMISSION"/>
                                                            <permission name="{current-grouping-key()}">
                                                            </permission>
                                                            </xsl:for-each-group>
                                                            </product>
                                                            </xsl:for-each-group>
                                                            </desk>
                                                            </xsl:for-each-group>
                                          </division>
                </xsl:for-each-group>
            </location>
           
    <!-- <xsl:for-each select="key('child-by-name', LOCATION)"> -->
                        
           
        </xsl:for-each-group>
    </xsl:template>
</xsl:stylesheet>