Are you looking at the default View at the URL /products? I noticed that it doesn't use the List Order as a sorting configuration by default. In fact, if the Node:Title field is set up to be sorted by default, you can't sort by the list order at all.

I've fixed this in the repository but you can do the same thing. Set the default sort for all fields to be None. In the Sort Criteria section, add Product:Ordering and Node:Title. If the Title and Price fields are left as sortable, the user can override the Sort criteria as normal.

If you're looking at a catalog page, I can't reproduce the bug. They follow the list order as far as I can tell.