This is a two disc release, and the numbers in the file names restart on the second disc. If you want you can also add the disc number to the file names using the %discnumber% variable. Or maybe you are tagging against the wrong version of the release, e.g. this is a two vinyl LP release, but you want to tag against the one disc CD release. In that case you can right click on the album in Picard and select a different version.
There are many ways to organize your albums. For me, I have placed each medium/disc in a separate folder (named (disc1), (disc2), etc).
I would recommend looking through two articles when you want to dig into it:
The second one also include a link to the old forums, where you find many more. It will take you a while to decide how you really want them organized, but there are a lot of good ideas in these!