I just bought a pet from the auction house and I’m unable to uncage it because it’s too high of a level.
Is there a reason for this other then I don’t have 1 pet at level 25?
That is the reason - you can’t learn a caged pet higher than the highest one you already have. Luckily it is pet bonus week so it will be fairly fast to level one up to 25.
Do you have a level 3 garrison? At that level there’s a quest from the pet trainer booth to pick up a stone at the garrison mine that will instant level a pet to 25.
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Additionally, you can get 60 polished pet charms from chests and rares. That’s enough to purchase a stone to level one pet to 25, then you can learn the caged one. See the “Dropped By” and “Contained In” tabs in the wowhead link below. Also since you are alliance, there are two quests listed there. And of course world quests if you prefer that method (they scale with pet level in BFA, so you can do them now if you want)
https://www.wowhead.com/item=163036/polished-pet-charm#dropped-by
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