There is nothing 'wrong' with what Word's doing, but with the way you're using it. Evidently you haven't done the basic multi-level list numbering setup correctly and/or you're overriding the Styles being used for that with hard-formatting. See:
https://support.office.com/en-au/art...4-adb8cd376474
http://office.microsoft.com/en-us/wo...spx?section=11
http://shaunakelly.com/word/numberin...g20072010.html
etc.

__________________
Cheers,
Paul Edstein
[Fmr MS MVP - Word]