There are many problems with your code - It's undocumented, you have things overlapping each other, you have the same code in multiple places, you have a race condition (unconnected code outside the frames) and you even have something unwired (Y Target).
I suggest you learn more about LV by searching this site and google for LabVIEW tutorials.
Here is one you can start with and
here is another. You can also contact your local NI office and join one of their courses.
All that said, if I understand you correctly, you need to have N_Y*N_Z = Array size. I'm not sure if this is happening. Even if it is, I think your problem is that for the entire first iteration of the OUTER loop, you keep taking the whole array, thus missing all those times to remove elements from the array.
I think you have some bigger problems than this, though. For one thing, converting to a cluster and then back is completely unnecessary. You could simply use index array instead, and it would extract the first element. A much larger problem is "what are you going to do with this?". At the moment, you're constantly writing to local variables. This seems completely unnecessary. In fact, I'm fairly sure that there would be a much simpler way to accomplish your target than how you're doing it the moment, but since I can't follow your code, I'm not sure what your target is exactly. I strongly suggest that you sit down and design the solution to the problem before doing it like this. I would also suggest again that you think about those courses. They have some invaluble information.
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