You aren’t wrong. Unity physics is wrong. Unity does a bunch of optimizations to speed up physics calculations, and one of them is to ignore conservation of energy and conservation of momentum.
If you need conservation, you’ll have to implement it yourself.
Whatever the settings, the ball will bounce higher and higher, whatever the doc says. It’s probably a problem wil the engine itself.
If you want the bounciness to go from higher to lower, as it should be, try the settings below and act on “Bounciness” until you get the result you want:
By the way, you must also add the bounce physics material to the objects on which your ball will bounce.