In your example document, if I click in the very first Heading 1 paragraph and then click Home > Multilevel List > Define New Multilevel List, it becomes clear that numbering is broken, because there are no associated styles in the list format (and the list format does not display correctly in the dialog box). You will have to start fresh.
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Stefan Blom
Microsoft Word MVP
Microsoft 365 apps for business
Windows 11 Professional
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