Thanks for your post! TestRail uses the popular Markdown formatting syntax for text fields, and this is the expected functionality as Markdown would automatically number the list for you when using a dot directly after a number at the start of a line (e.g. when using “1.” and “2.”). As there is a line break between the first number and the second number, the list starts back over at 1 on the second number as Markdown is detecting a new and separate list. You can see how this works on our website here:
You can avoid having the numbers automatically listed by indenting the line with 4 spaces as this would assume a code block and display the text as-is. If you eliminate the line break then this would also just increment the numbered list for you automatically. You can also alternatively use a separate symbol for the manual number list, e.g. such as “1)”, “1 -”, or similar.
Hope this helps!