Your Square catalogue may not fit Etsy as it stands
Two Etsy rules decide the shape of the catalogue, and both are worth settling first.
Etsy allows two option types on a listing. Square will happily hold a product that varies by size, colour and material, and that product cannot cross to Etsy in the same shape: two of those have to be combined into one option, or the product has to become more than one listing. Neither is difficult, but it is a decision about your catalogue rather than a setting we can flip for you.
The second rule bites straight after the first. If you split a product across two Etsy listings and leave the same SKU on both, Etsy flags them as ‘Multiple same SKU’ and we keep sync off for those listings. That is a deliberate stop rather than a failure: with one SKU pointing at two listings there is no honest way to decide which count belongs where. Give each listing its own SKU and they start syncing.