Same notation/terminology for union of sets and concatenation (Kleene star)?

Question

For the union of sets we use the union operator $\cup$ (or $\bigcup$). And for a concatenation (Kleene star) we also use the union operator. The operations are different, but why the same terminology and operator?

The following is my understanding of the union of sets versus the concatenation of sets (Kleene star). Please correct me if I'm wrong.

Union of sets

For the two sets $\{a,b\}$ and $\{a,b\}$ we have the union \begin{align} \{a,b\}\cup\{a,b\}=\{a,b\} \tag 1 \end{align} Update: For reference I used Union (set theory) from Wikipedia.

Concatenation of sets (Kleene star)

The concatenation of $\{a,b\}$ and $\{a,b\}$ is also a union (same notation?!) of two sets \begin{align} \{a,b\}^*&=\bigcup _{i=0}^{2} \{a,b\} ^2 \tag 2\\ &=\{a,b\} \cup \{a,b\} \tag 3\\ &=\{\epsilon,a,b,aa,ab,ba,bb,aaa,aab,aba,abb,baa,\dots\} \tag 4 \end{align}

Update: For reference I used Kleene star from Wikipedia. And here's where my confusion lies because at Wikipedia they also use the notation with the union operator: $$ V^* = \bigcup_{i\geq 0} V^i = V^0\cup V^1 \cup V^2 \cup V^3 \cup V^4 \cup \cdots \tag 4 $$ Which is the same (?!) notation as in my $(2) - (3)$ but with the upper bound $2$. And the notation does not coincide with $(1)$.

Answer 1

Wikipedia is using $\cup$ in its usual meaning, set union. When Wikipedia defines $$ V^* = \bigcup_{n \geq 0} V^n = V^0 \cup V^1 \cup V^2 \cup \cdots, $$ it literally means that $V^*$ is the union of the sets $V^0,V^1,V^2,\ldots$

The concatenation happens in the definition of $V^n$, which can be defined as follows: $V^0 = \{\epsilon\}$, and $V^{n+1} = \{ xy : x \in V^n, y \in V \}$. In words, $V^n$ is the concatenation of $n$ words from $V$.