Hello, this interaction is bugged currently. It transforms the minions on the field correctly to +9 minions, but minions in hand just get replaced 3x by +3 minions. I don’t think that’s intented. 
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Minions in your hand don’t change cost.
The transformation is based on the cost of the minion in your hand.
Since the cost doesn’t change 3 times, the transformation will have the same cost outcome 3 times
That’s how it has been intended for all other cards with that mechanic in the past
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Yes it is intended.
Azerite Murloc says that the minions keep their original costs. So a 2-cost minion in your hand will be transformed into a 5-cost minion but it keeps its 2 cost. Then, since it still costs 2, the next battlecry again transforms it into a 5-cost minion but keeps its 2 cost. Then the last battlecry does it again.
I think your confusion is because minions on the board are treated differently – they actually do evolve all the way up. This is because there is no way to reduce the cost of minions on the board.
Once a minion is on the board, it always has its true cost, so the “keeps its original cost” effect is ignored for board minions, and they receive all three full evolutions.
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