Pro Sites will not filter my premium plugins by levels.

Pro Sites will not filter my premium plugins by levels. I have 3 levels on my multisite install. Some premium plugins are restricted for level 2 and up. Whenever I create a new site through a different admin account, if I had selected autoactivate for level 2 plugins the level 1 site has the plugin installed. If I deselect autoactivate and create another site then manually upgrade it to level 2 the plugin is not available. No matter what level I upgrade to, I get the cheatin' error message. By the way how do I change that message?
I did change the levels a few times before settling on my current configuration. I have since deactivated and reactivated then uninstalled and reinstalled Pro Sites. I tried with different plugins same issue. The settings has the sites starting at level 1. What could I be overlooking?