This is common and typical of parliamentary systems of government. It’s how they work. In Parliament, a party or a coalition of parties if one doesn’t have an absolute majority, controls the government, appoints one of their members (called ‘ministers’) as Prime Minister, and he forms a cabinet, etc.
When something happens to upset the party’s majority, such as local elections that indicate dissatisfaction with the party, or one or more of the coalition members decides that it does not favor a particular government policy, there is a “loss of confidence” in popular support of that government, and the PM dissolves parliament and calls for new elections.
In the British system, for example, elections are mandatory on ‘at least’ a certain cycle. (Five years, maybe? A Brit can help us out, I’m sure.) But if there’s a ‘loss of confidence’ upset then it is expected that the PM will call for new elections regardless of where they are in the ‘mandatory’ election cycle. The PM can also call for new elections if he thinks that he has such a commanding lead in the polls that his party will do very well, and he wants to reset the clock on the next ‘mandatory’ election.
Nothing is wrong in Ireland (except the things that are always wrong, and every place has some of those things). This is the Irish government in normal operation.