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I dunno why officially because I stopped playing for a while back then but character levels were replaced with the season pass levels, which used to show in place of character levels between Shadowkeep and Lightfall. I believe that to be the reason.
But that'a an obsolete artifact from years ago. It no longer has any bearing on the current game.
https://nerdburglars.net/gameguides/understanding-xp-and-levels-in-destiny-2/#:~:text=Character%20Level%20%E2%80%93%20As%20you%20get,you%20are%20not%20high%20enough.
Seasonal levels, at least by this point, are really just there to show people how much you grind the game.