How do merit lists work???

So I came across last years "merit list", if I'm not wrong there only 23 seats but the list has way more than 23 names.
So how does it actually work?
Now, I know it's just gonna show up on samarth portal and you have to just submit fees and it's guaranteed if you show up.
But then what is all this, I believe it was the same last year too, so why does this list even exist and AHHH??!!

Maybe I'm stupid, and even if I am can someone please explain it to me. Thank you.

https://images.shiksha.com/mediadata/pdf/1754543166phpI7KgPH.pdf
https://acad.uohyd.ac.in/downloads/Intake2025.pdf