List item creation has an issue that's not easy to describe. Look below for steps to reproduce.

To replicate:

(0. Using an external keyboard (like via Vysor) on Android)

1. Use an example html with nested lists like this one:

<!-- wp:list -->
<ul><li>line 1<ul><li>line 21</li><li>line 22<ul><li>line 31</li><li>line 32</li></ul></li></ul></li><li>line 3</li><li>line 4</li><li>line 5</li></ul>
<!-- /wp:list -->

2. Place the caret at the end of the "line 22" line and tap on Enter
3. Notice the caret going at the start of the "line 31" line.
4. Place the caret at the end of the "line 31" line and tap Enter again
5. Notice a new list item appearing above the "line 32" line but, having a 1 char in it, which is now missing from the line above leaving that as "line 3"