Why does my variable cap at 2?

This is what I have:

But if I press down on the D-pad and the value is 2 for example, it won't go up to 3, it just stays capped at 2. Why is that?

Maybe because you only look for less than 2 or greater 2 not for equal 2.

If your variable is 2 nothing will happen. Same for zero.

Exactly as Asmodean said,

you have to use < 2 and >= 2.

I tried that before, same results

That is because your two following events. The second event will immediately overwrite the result of the first event if the value is above 2.