Take a look at your output. Notice that an equal sign separates each string into a key-value pair. Think about how you want to approach this problem. Is a list of strings really the structure you want to build on? You could take a different approach and use a list of KeyValuePairs or a Dictionary instead.
If you really need to do it with a List, then look at the methods LINQ's Enumerable has to offer. Namely Select and GroupBy.
You can use Select to split once more on the equal sign: .Select(s => s.Split('=')).
You can use GroupBy to group values by a key: .GroupBy(pair => pair[0]).
To join it back to a string, you can use a Select again.
An end result could look something like this:
List<string> stringList = values.Split('&')
.Select(s => {
string[] pair = s.Split('=');
return new { Key = pair[0], Value = pair[1] };
})
.GroupBy(pair => pair.Key)
.Select(g => string.Concat(
g.Key,
'=',
string.Join(
", ",
g.Select(pair => pair.Value)
)
))
.ToList();
The group contains pairs so you need to select the value of each pair and join them into a string.