A family of Microsoft word processing software products for creating web, email, and print documents.
To make this work, you have to have set up a multilevel list linked to styles as described at https://shaunakelly.com/word/numbering/numbering20072010.html. The article describes numbering heading styles, but any style can be used. In this instance, you might want to start with List Number, List Number 2, List Number 3, etc.
I personally never create a list style; I just start with one of the options in the multilevel list gallery (in this case, you would use the one that shows 1, 1.1, 1.1.1, etc.), and then click Define New Multilevel List to fine-tune the indents and spacing and link the levels to styles.
The important thing to remember about numbered styles is that you can modify most of the formatting of the style (font, paragraph spacing, justification) in the Modify Style dialog, but all the settings for indents on the left (left, hanging, first-line) must be set in the Define New Multilevel List dialog.
If you have already done all this correctly and find that the numbering is still not working right, make sure you have each lower-level style set to restart after the next-higher level.