Unable to make more than one list item per list

I am mostly trying to confirm if this is just a new way the List block works or if it is something broken that we are missing. While testing our theme against the WP6.1 RC 3 we ran into some confusion regarding lists. When creating a list we cannot create more than one list item at each level. It will allow a nesting of other lists within but if you create a list you cannot add more than the initial list item to that list. Initially I though it was something wrong with our build but upon switching to several of the provided themes such as Twenty Twenty-One and Twenty Twenty-Two the same issue occurs.