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You basically explained to yourself how it works in this post so I'm not sure what you're not understanding.
"Instead of fixed difficulties such as Easy, Medium, and Hard, the difficulty is expressed using a number currently between 0.5 and 4.0[1] (or 5.0 in The Center). This number is known as the Difficulty Value and is controlled by the DifficultyOffset option.
...
To calculate the Difficulty Value for a specific Difficulty Offset, use the formula: Difficulty Value = (1 + DifficultyOffset) * (Official Difficulty - 0.5) + 0.5 and round to one decimal. To calculate the Maximum Creature Level for a given Difficulty Value, simply multiply by 30."
This is similar to what you find on pretty much every other explanation, from paid server hosts' explanations to forums to wikis. What am I misreading here?
Nothing I've seen mentions DifficultyOffset affecting max creature levels when OverrideOfficialDifficulty is also being used.
If you have OverrideOfficialDifficulty=x in your .ini, the DifficultyOffset setting has no effect on max levels because the Override line overrides it - that's why it's called Override in the first place. But if you are not using the Override line in the .ini, then the Difficulty Level/DifficultyOffset setting will affect max level.
So if you want to test what actually changes with it, you need to remove the OverrideOfficialDifficulty line from the .ini.