Question Number re-ordering issue in Survey

You're correct, Qualtrics question numbering will reflect the object number, regardless of whether intervening questions were seen or not; it doesn't display the number of questions from the perspective of the participant, but of the programmer.
For this reason, unless a survey is very simple (with no logic or skipping applied) we ONLY turn on the question numbers in the preview/editing/testing process, which is where the question numbers are most helpful. (This ensures that when a tester says, "there is something wrong with the translation on Q10" that they are in fact talking about Q10, and not "the 10th question they saw, whatever that may be")
But we turn OFF question numbering for the participant, so that the skipping behaviour is invisible to them. Instead we turn on the progress bar so they can see that they are moving through the survey successfully. I am sure that is not what you hoped for, but it is how question numbering works in Qualtrics. (If this is important to you though, consider adding a Product Idea for additional question numbering options. If there is a lot of demand for it, and/or if it's not a major lift to implement, it might get into the project release plans)

Hey CarolK thanks for the reply!
Actually now that I think about it, using the progress bar is the sensible way to go forward from a respondents perspective. Question numbering is better kept for our own analysis point of view.