I thought I'd chime in on this thread even though it's old, because it's the first hit on Google about this problem.
I fixed this on my copy of Safari by doing the following.
- Close all open Safari windows (not tabs). You should end up with just the menu bar and no open windows. (Keep in mind that you'll lose any unpinned tabs by doing this, so bookmark/pin/etc. any tabs you want to hang onto.)
- Go to the Safari menu and select File/New Window. Any new tabs will now only say "Untitled" and not "Untitled [number]".
After researching this problem, it seems to happen when a new window (not tab) is opened, and the original window is closed, so even though Safari only shows one open window, it still considers that window to be the second one opened, and therefore labels all tabs in it accordingly ("Untitled 2").
While the "Untitled [number]" issue is a bit of an annoyance for those of us with AR tendencies, I would think it would be a simple fix for the Safari team, so it's possible it will be addressed in a future release. In the meantime, this workaround seems to work for me, and hopefully for anyone else. If not, please post.