Cross references are not working correctly

Hi,

This is something I haven't come across before. I am trying to update a bulletted list to add a cross reference and page number. 

I have a list of three bulleted items that are flagged as Bullet Main. When I select an item and click Cross-Reference, the dialog opens and displays the same content as what's listed. When I click an item in that page and click Replace, the item is replaced incorrectly with the chapter number and name that this content belongs to.  I have tried to replace each item in the bulleted list and each shows the same incorrect file. 

The three screenshots (numbered in sequence) added, show the evolution of this problem. Can anyone explain why this is happening and how I can fix it? 

Thank you.

Elizabeth