Turning Off Auto-Correction

Removing jagged lines under misspelled words

Open Microsoft Word and click on File->Options->Proofing.
Under the third blue bar "When correcting spelling and grammar in Word", check off the first option "Check Spelling as you type", click OK.

Turning off automatically converting two hyphens into a dash

Click File->Options.
Click Proofing in the left navigation pane, click the Auto Correct Options button on the right side of the window.
AutoCorrect window pops up, choose AutoFormat tab, and then check off the option for "Hyphens (--) with dash"

Turn off numbered lists formatting

Click File->Options.
Click Proofing in the left navigation pane, click the Auto Correct Options button on the right side of the window.
AutoCorrect window pops up, choose AutoFormat As You Type tab, and check off the option for "Automatic numbered lists" and then click Ok.