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"While loosing dedicated Pinnacle Drops will likely make leveling slower for players who aren't at or near the cap, Bungie has promised to keep an eye on how effective this system is and will make changes as necessary. However, adding a focusable Exotic Engram, which can be utilized at the Cryparch Rahool, gives Destiny 2 players another dedicated way to earn exotic gear. Being able to focus exotics is another new feature in Season 21 and players can earn more by finding them randomly in the world, from the Season Pass, or by resetting vendor reputation tracks. " - game rant . com
While I don't know about your issue, this^ is because your highest rank shows for the next season as well. This straddles the line between their goal of 'your rank is supposed to reflect mastery of current content so it shouldn't be permanent' and 'if it reset every season everyone starts every season at 5 and it is pointless for the starting weeks'. Current rank 11 players just got rank 11 last season; they only need to refresh it by seasons' end to keep it for the next season.
For me every pinnacle works. I actually received 2 exotic engrams when I did 3 Gambit matches and unlocked that challenge.
Btw. the rank you see at other guardians is the rank they achieved last season, except if they are new.