Thank you for the replies.

I figured it out myself. To cure the 1.01 and 2.01 subheadings, choose "Level 1" in "include list level". Then both numbers change at the same time.

Choose "Define New List Style" in Paragraphns on toolbar then "Format" then "Numbering" which opens a Modify Multilevel List window. From there you can choose to include the list level.