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Default List Will Not Automatically Expand

I have data in cells a1:c10
Row 1 contains column headings. I create a list, and get the blue border
with an asterisk (*) in a11.

I expect the list to expand if I type or paste into a11. Instead, the typed
data appears with the asterisk superimposed over the data. If I move select
a cell outside of the list, the newly typed data remains, but if I select a
cell within the list, the asterisk appears in a11, and the new daya appears
in a12, outside the border of the list.

Any help would be appreciated.

Thanks.

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