Short answer: dilute 25 mL of 2 M to 100 mL and the concentration becomes0.5 M. You add 75 mL of solvent, but the final volume is 100 mL — the two numbers differ and confusing them is the standard mistake.
Why the equation holds
Adding solvent changes the volume, not the number of moles. Since moles are concentration times volume, that product is fixed, and every dilution question is that one conservation statement with a different unknown.
Worked example
A bench needs 250 mL of 0.1 M HCl from a 1 M stock: V₁ = 0.1 × 250 ÷ 1 = 25 mL, made up to 250 mL with water. Half a litre of bench reagent from 25 mL of stock is the whole economy of a lab session explained by one equation.