If you can tell us what you’re expecting to happen instead, we might be able to help you get there.
The limits are taken from the deck you click to study, which interacts with the limits of its subdecks (described in more detail at the link Keks posted). When you click on Subdeck 1 to study, it has 10 New available, and it obeys its own limit of 5 per day.
With Limits-from-the-top turned on, a higher-level deck’s limit will be impacted (“eaten up”) by any studying you start at the subdeck levels, but it doesn’t force a larger limit on any of the subdecks.