I can imagine that Kubrick conspiracy theorists would argue that this is all intentional, adding to the movie’s dream-like feel. That by trapping Bill in the same three recurring New York streets, it’s like he’s in a nightmare he can’t escape. I could buy that to a certain extent.
But a more practical way to look at it is that Kubrick was simply doing what every filmmaker does when shooting on a set. Film sets are limited in size, and you do everything in your power to give them scope, the sense of an outside world. Also, film sets cost money, and rather than tearing down and rebuilding, you try to use them in as many different ways as possible.