This applies to Knowledgebase 9.0.1 and later.
This behavior is by design.
In 9.0.1, the product design is only the v1.0 (v1.0 = The first time when the article goes Live). Only this version is shown in the Latest Articles.
To clarify:
1. Create an article in the workflow step New (version number assigned to it will be 0.1).
2. Then create another new version of the same article and make it again New (version number assigned would be 0.2). Change the status of this new version of the article to Live (now the version number changes to 1.0). Only this version is shown in the Latest Articles.
If the workflow step were changed from from Live to New the version would get changed to 2.0. This article will not be shown in the Latest Articles because its version 2.0 and not version 1.0.
If you have questions or concerns about this please email Support at cimsupport@moxiesoft.com or call us at 1-877-373-7848 option 2.