List button in post editor doesn't work properly

When I select multiple lines of text to turn them into a bulletted list, the button doesn’t set the ‘li’ tags properly. I have to go back and place ‘li’ and ‘/li’ tags around each line manually.

Example:

  • Item 1
    Item 2
    Item 3
    Item 4

In the editor it’s doing this:

[list]
[li]Item 1
Item 2
Item 3
Item 4[/li]
[li][/li]
[/list]