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It's the most wonderful time of the year - Santalytics 2020 is here! This year, Santa's workshop needs the help of the Alteryx Community to help get back on track, so head over to the Group Hub for all the info to get started!
Can you show the entire configuration box? Or even better, attach a copy of the yxmd file? If you don't have a sheet name in the initial file specification, you could get that error even if you are replacing the sheet name.
The attached workflow does save the data in separate tabs. Just as a test, I temporarily removed "|||Sheet1" from the file name and did get the error you described.