The contract is never upgraded to LevelTwo.
Function LevelOne::graduateAndUpgrade is used to upgrade the contract. In particular, it is used in the upgrade script GraduateToLevelTwo.s.sol. Here is the function LevelOne::graduateAndUpgrade:
This function does not call UUPSUpgradeable::upgradeTo or UUPSUpgradeable::upgradeToAndCall that actually upgrade the contract. It only calls _authorizeUpgrade that must be used to check permissions. So, actually the function checks permissions and does not upgrade the contract.
The contract is never upgraded to LevelTwo.
Manual review
Call UUPSUpgradeable::upgradeTo ro upgrade the contract.
The system doesn't implement UUPS properly.
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