Are you using direct formatting? You need to use styles for this to work.
- Right click on Default Paragraph style and choose New…
- Type a name for e.g. “mystyle”
- Outline & List tab - List style - Numbering 123
- Click on “Edit style” button next to Numbering 123 and choose your preferred numbering pattern for e.g. 1. 2. 3.
- Text flow tab and choose “Automatically” in Hyphenation section.
- Select the text and double click on your style name (“mystyle” in this case) to apply.
Your text will be on the left side next to an image (with numbering and hyphenation enabled)
Please note: if you just type the character “w” multiple times it will still be on the new line because hyphenation has many options to control the behavior of flow. Please try with the actual text.
You did not mention the version. I am pasting the information from my Help - About Libreoffice
Version: 25.2.3.2 (x86) / LibreOffice Community
Build ID: bbb074479178df812d175f709636b368952c2ce3
CPU threads: 4; OS: Windows 10 X86_64 (10.0 build 19045); UI render: Skia/Raster; VCL: win
Locale: en-US (en_IN); UI: en-US
Calc: threaded