Your code works perfectly fine. It was not returning Doc jr because you filtered it out in your where clause. The easiest way here is to add filtering to the first portion of your cte.

declare @Number int = 111;

WITH ctePeople

AS ( SELECT Number

,Name

,CAST (NULL AS NVARCHAR(50)) AS ParentNumber

,1 AS CustLevel

FROM tempdb.dbo.People

WHERE ParentNumber IS NULL

and Number = @Number

UNION ALL

SELECT bic.Number

,bic.Name

,cte.Number AS ParentNumber

,cte.CustLevel + 1

FROM tempdb.dbo.People bic

INNER JOIN ctePeople cte ON bic.ParentNumber = cte.Number

WHERE bic.ParentNumber IS NOT NULL

)

SELECT *

FROM ctePeople

--WHERE Number = '111'

-- OR ParentNumber = '111'

ORDER BY CustLevel;