well, when I test it on my board it works as it should the proper number of warnings show up on that page.
first, try switching to prosilver and checking it. then, assuming that you are using phpbb 3.0.x, check for any MODs you have installed and turn them off one at a time to see if that fixes it. if you are using 3.1.x disable any extensions one by one to test.
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Okay, I've corrected the numbers, now they go up. Is there any way when it gets to 3, the user is changed from group, and the warnings restart? For example :
User group: Moderator
Automatic switching for
User group: Member: