I have been noticing that when I log out and come back to the game hours, or a day later that some or all of my Neck, Trinket, and Rings have been replaced by level 123/8 items that my level 70+ character replaced long ago.
If I happen to have scrapped my items, the new iLvl 300+ that I had most recently equipped, I will find the above condition, and the added bonus that all of those upgrade items are no longer in my inventory.
(finding) I found that if I take one of the items that is showing item lvl 123/128 and put it into the scrapper, the item lvl changes to the correct ilvl.