I thought I handled these too. I'll try to replicate the pastebin link when I can, but I can't do any proper mafia work until Thurs when I'm back at workThe counter is reset upon ascending, and I think that is handled correctly, however:
The counter should reset upon accepting a quest at the start of Neverending Party.
The counter continues from where you left off if you reject the quest.
Those might not explain what you're seeing but that is a detail I remember being a point of confusion about it in the past