First question is why do you want this? Publishers can adjust this in the print/editing process.
But assuming you still want to do it.
The paragraph and tab settings are two separate things, and Endnote uses paragraph settings only, so the tab is default and set the same as the hanging indent. To adjust it, you will need to change the tab (and probably first increase your hanging indent). The hanging indent can be increased in your layout. The 1st or 2nd or all or none settings have little to do with what the hanging indent is, just where it is applied.
Your easiest option is to wait until you are done and adjust it manually.
Or you could try to modify the “Endnote Bibliography” that endnote creates in the Word styles list to change the tab to be less than the hanging indent. Some endnote versions over the past years - this modification sticks (as it seems to in my current X9.2 install on windows, which I haven’t updated yet). To try this, first select one of the references in the bibliography, with your home menu selected on the ribbon, drop down the styles list (the little angled arrow at the bottom of the styles), and the Endnote Bibliography style should be boxed/selected. Right click on it and modify, format the tab, and add a first tab, smaller than the hanging indent setting you set in the endnote layout. So if your hanging tab is default 0.50, you make the first tab 0.30. To make it look better, you probably want the hang to be 0.75 and your new tab to be 0.50.
This should be applied automatically to all the references – and in my tests today it sticks when you add new references or when you updated citations.
If not, you will need to do this just before printing when you are finished.
Hope that is clear enough. Word magic and undocumented features of Endnote can be complicated.