Steps to reproduce

Highlight selection with multiple rows
Use Command Palette to select “Toggle numbered list”

Expected result

The selection should create a numbered list with 1. , 2., 3., etc

Actual result

A list will be created with all line at "1. "

Environment

Windows 10
Obsidian v0.13.19

Workaround

Create a new line after any numbered item and add a new indented bullet point. This triggers the numbers to be updated.

We don’t support this yes. Please, open a feature request.