Details Node is a Descendant of Report so it cannot be referenced directly
use docHeader.Element("Report").Element("Details").Add(docRecords)
for (int i = 0; i < 2; i++)
{
var docRecords = new XElement("Record",
new XElement("ID", i.ToString()),
new XElement("Reference", "2017" + i.ToString())
);
docHeader.Element("Report").Element("Details").Add(docRecords);
}