Editing list auto-inserts incorrectly while creating a new line

Adding a newline (Return key) before a list item should not auto-insert a new item.

This behavior is quite frustrating. Video to illustrate

Screen_Recording_2023-01-19_at_2.58.47_PM

Steps to reproduce

1. Create a list
2. Attempt to create a blank line before entire list

What I expect to get

Note I expect a new line before 1.

1. Create a list
2. Attempt to create a blank line before entire list

What I get

1. 1. Create a list
2. Attempt to create a blank line before entire list