Deep Green Waste and Recycling Inc (DGWR)

[Ignatius J. Reilly]

From investopedia:
It's also worth noting that there are two ways to express the number of shares outstanding: basic and fully diluted. The basic number refers to the current number of outstanding shares, while the fully diluted number takes into account such things as warrants, capital notes, and convertible stock. In other words, the fully diluted number of shares outstanding tells you how many outstanding shares there could potentially be.

No, the company is not issuing new shares currently.
Yes, the holders of the convertible notes are converting them to equity and selling them off.
These 2 things appear differently when watching L2 but both increase the number of shares outstanding. The OS number given out by the TA doesn't take into effect outstanding convertible debt, therefore when it is sold it increases the Basic OS.