The spells themselves don't level up, but you can cast them at a higher level. See at the very bottom there where it says 6/6? That's your prepared spell slots being taken up. so you can prepare 6 spells some might be able to be cast at level 2 others only at that level. The part you circled is how many times you can cast at that level. So your wizard can cast 2 more spells at level 1 casting. Your cleric can cast 1 more spell at level 2.
