FIN advances the sender's sequence space by exactly one.
FIN consumes one sequence number
The client FIN starts at sequence 1003. TCP counts the FIN as one sequence position.
1003+1=1004
The next client slot is 1004
After the FIN, the next client sequence slot is 1004.
next client slot=1004
Why the ACK does not stay at 1003
The server has received the FIN at 1003, so it asks for the next slot after that control flag.
next wanted=1004
Summary
The FIN flag advances the client-side sequence count by exactly one.
FIN ACK=1004