Explanation 1: If you have only $(x+1)$, your denominators are too weak:
$$\frac{A}{x}+\frac{B}{x+1}+\frac{C}{x+1} = \frac{A(x+1)}{x(x+1)}+\frac{Bx}{x(x+1)}+\frac{Cx}{x(x+1)}$$
Thus, you your denominator is quadratic whereas the desired denominator is $x(x+1)^2$, cubic. I mean, $\frac{C}{x+1}$ is redundant. Why? Just let $D=B+C$. Then we have $\frac{A}{x}+\frac{B}{x+1}+\frac{C}{x+1} = \frac{A}{x}+\frac{D}{x+1}$.
Explanation 2: Would you do this?
$$\frac{1}{x^2} = \frac{A}{x} + \frac{B}{x \ \text{and not} \ x^2 ?}$$
Explanation 3: Actually, some texts suggest
$$\frac{5x^2+20x+6}{x(x+1)^2} = \frac{\text{something}}{x}+\frac{\text{something}}{(x+1)^2}$$
where $\text{something}$ is an arbitrary polynomial with degree 1 lower than the denominator, i.e.
$$\frac{5x^2+20x+6}{x(x+1)^2} = \frac{D}{x}+\frac{Ex+F}{(x+1)^2}$$
This is actually equivalent to what your text suggests! How?
$$\frac{Ex+F}{(x+1)^2} = \frac{Ex+F+E-E}{(x+1)^2}$$
$$= \frac{E(x+1)+F-E}{(x+1)^2} = \frac{E}{x+1} + \frac{F-E}{(x+1)^2}$$
where $E=B$ and $F-E = C$
If you're confused about equivalence or of why there's a squared, I think it's best to just play safe:
Partial fractions, if I understand right, is pretty much an ansatz in basic calculus, iirc (the word 'ansatz' is used here, but I guess different from how I use it).
Instead of trying to understand, I just go on the safe side and do:
$$\frac{5x^2+20x+6}{x(x+1)^2}=\frac{A}{x}+\frac{B}{x+1}+\frac{Cx+D}{(x+1)^2}$$
Similarly,
$$\frac{5x^2+20x+6}{x^2(x+1)}=\frac{A}{x}+\frac{B}{x+1}+\frac{Cx+D}{(x)^2}$$
$$\frac{5x^2+20x+6}{x(x+1)^3}=\frac{A}{x}+\frac{B}{x+1}+\frac{Cx+D}{(x+1)^2}+\frac{Ex^2+Dx+F}{(x+1)^3}$$
Maybe there's some rule about how something is redundant, but I don't care (if I start caring, I may end up with your question) because I'm covering everything: Whenever there's an exponent in the denominator, I do as many fractions at that exponent. The additional coefficients will end up as zero anyway.