What is a more formal synonym of Catch-22?
Your question is an interesting one. The simplest answer is that the list of instructions, as set out, are mutually contradictory. It is not an example of a Catch-22 rule. It relates to a rule, according to which military servicemen on active service are entitled to be relieved of missions (in the novel it is bomber missions) on the basis of mental incapacity. The original Catch-22 in the novel of that name [Ch.5 page 56] is as follows:-
There was only one catch that was Catch-22, which specified that a concern for ones safety in the face of dangers that were real and immediate was the process of a rational mind. Orr was crazy and could be grounded. All he had to do was to ask; and as soon as he did, he would no longer be crazy and would have to fly more missions. Orr would be crazy to fly more missions and sane if he didn't, but if he were sane he had to fly them. If he flew them he was crazy and didn't have to, but if he didn't want to, he was sane and didn't have to.
A brilliant paragraph from one of the most brilliant satirical novels of my generation. The catch is in effect a let-out codicil to the rule, which invalidates the rule itself, and leaves the appellant going round in a futile circle.
Your example is not really a catch-22. Rather, it is
self-defeating
It does not carry you round in an endless circle. It is certainly not brilliant. It has two mutually contradictory instructions. You cannot obey instruction two without violating instruction three and vice versa.
One phrase for a Catch-22 given in Lexico is
double bind
NOUNA situation in which a person is confronted with two irreconcilable demands or a choice between two undesirable courses of action.
The result was a double bind: a framework in which women's access to citizenship came through the family and a deeply-rooted image of women in the family as incapable of citizenship.
So your sentence can be
The requirements for preparing the report presents a double bind for employees.
But I don't think the situation you describe is really a Catch-22 or bouble-bind, more of an impossibility to comply with.