Okay. This may be a simpler way. You can use ListNum fields instead of using the Insert Captions feature.
Try this out on one or two sections of your document and if it works well, you can use it for your whole document. But make a copy of the original document and try the method given below on the copy. In case it doesn't work out, you still have the unchanged original.
1. Remove the inserted caption, but let the word "Figure" remain. Or delete everything and type "Figure". Leave the cursor there and go to next step.
2. Go to Insert Menu; click on Quick Parts; select Fields.... The Field dialog box opens up. Under the Field Name choose ListNum.
3. In the options given on the right hand side panel,keep the List Name selected to (none) and in the Field Options, check the box next to "Level in the List" and enter a number which is one higher than the paragraph level under which you are adding the caption. e.g. if the caption is for a picture under a paragraph designated as Level 3 (1.1.1), then enter 4 in the field. Click okay. You should get the right numbering format (1.1.1.1). If you have another picture under the same paragraph, then repeat the process. That should give the number 1.1.1.2.
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