Unlike a Document Library, where it automatically stored the last 500 versions of each document, it only stores 50 by default in a list. You can either increase it or disable it altogether. It is worth noting that you cannot totally disable version history on a document library, and 100 is the minimum version you can have there. Here is a summary of how version history works on a list:
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Versioning enabled by default, set to last 50 versions
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Versioning can be disabled if need be
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No minimum number of versions, max is 50,000
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Minor versions available as well, just like with document libraries, but only if you enable the Content Approval feature
How to configure Versioning Settings on a list
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From a list, click Gear Icon > List Settings
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Click on Versioning settings
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Adjust the settings as necessary, then click OK
How to access version History on a list
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Right-click on the item whose version history you would like to view, then click Version History
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You will now see the version history log of all the changes to the item (looks very similar to Document Version History)
How to restore a previous version of an item in a list
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Click the drop-down next to the version you would like to restore, then choose Restore
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For the pop-up message, you will get, click OK
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Just as with Document Version History, another version will be created, and the item’s metadata will be reset to the state it was at that particular point in time (version)
