I would call that f"steps.{step.name}" to make it clear that this is a separate logger hierarchy for steps.

That format doesn't have %(asctime)s, so I'd use a more specific one. Probably something along the lines of "%(asctime)s %(levelname)s(%(func)s) %(message)s" (which drops the redundant %(name)s too, as you have one file per step).

You should add step_logger.removeHandler(step_handler) and step_handler.close() when this function ends to avoid keeping the per-step logfiles open until the logging module tears down.