Our whole hiring process does level people, but the one challenge you did does not. It's pass/fail.
So: no, there is no such implication in being rejected at that point. I'm saying that explicitly right now, so there needn't be any uncertainty going forward.
I think it's also pretty important to understand that different companies have different leveling functions. Not being L3 at Fly.io in 2023 doesn't say much about what level you'd be anywhere else.
Not explicitly but isn't that the implication if I applied to a position open to levels 1-3?