Patch makes all equipment Level 1 and can’t level up.
If you unlocked the Altar node allowing you to equip any item at level 1, this is working as intended. The items are still their usual level, but show level 1 in the descriptions because you can equip them at level 1. The item level is still 70, and can be used in the cube like any other time you play.
You can use the D3 database to check crafted yellow item names, but most of them begin with Sovereign, with the exception being Necromancer scythes and phylacteries.
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If your Patch shows as 2.7.7.93903, it is the current Patch.
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Just a couple points…
- The best items for crafting are always at the top. Check the armor value.
- Blizz: Displaying “1 (70)” would be clear.
- Blizz: Followers cannot equip such gear and it’s really difficult to figure out the actual level of an item. Of course, templar aside they can stay naked.
- It’s a big convenience, mostly for hardcore players, because you can craft a set of 70 right away and level very quickly - instead of begging for boosts or carefully working through. T6 with a set, T1 without (at 70). Ultra casual. It’s similar to the effect of 280 gems and paragons.
ps.: Regarding that T1. For a laugh and a lesson to everyone. So I have LoD gem, 150% extra for each legendary. Using crafted… And then the light bulb moment, Aughild and Ashaera crafted sets are sets. I’m so smart. 
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