Your caption field is correct to pick up the number from the last heading 1.
That is the { StyleRef 1 \s } part. It gets the number from the preceding paragraph using Heading 1.
Your caption's Sequence field should also be restarting the numbering of the figure at 1 following a Heading 1. That is the \s 1 switch in that field. If this is the first figure in Chapter 3, it should show up as 3-1, not 3-13.


I would guess that your Chapter 2 and Chapter 3 are not using that Heading 1 Style even if it looks like they are.

Click in each of those headings without selecting any text. Press Ctrl+Alt+1 when your insertion point is in the heading.

Then go back to your caption and click on it. Press F9.

Does that help?