Just getting started on wild pets, and a level 25 has always dropped to 23 when captured, but now they lose a level of quality too. Check out a wild pet team that has a Rare, capture it and it becomes Uncommon.
Was intrigued to see a team with an Epic Cobalt Ramolith, didn’t know Epic pets were coming in TWW. But it fought, and captured, as a Rare.
I noticed this and thought it was just an add-on issue (I was too tired yesterday to go back and test it, particularly as the character I was on didn’t have any pet bandages).
It could be a Rematch issue. I have noticed it all weekend. I just assume that all wild pets will drop a quality level once captured
But it also applies to our pets. I was doing some trainers and it appeared that all of my pets were epic, when they obviously are not
This was a BattlePetBreedID issue, and was fixed in a later update. The addon’s GitHub workflow entry for v1.29.1 mentions a mismatch in the API.
All qualities were upped by 1. I even have a screenshot of a Legendary opponent becoming an Artifact 
Duh, didn’t think to check the add-ons. That was indeed the problem, thanks!
Seems like a similar problem affects PetTracker’s switcher, but instead of going up, it goes down. Unfortunately I don’t know of a fix.