Table of Contents dialog box indenting looks wrong but works fine

It would be nice if this dialog box also offered a way to create those PDF TOC bookmarks all collapsed so they’d be much more usable. I’ve posted this on UserVoice, but here’s my workaround from 2023:

PDF Table of Contents from my InDesign files always show up expanded, which is very hard to navigate. I've been manually collapsing them after exporting from InDesign.  Here is my workaround/kludge from 2023:
PDF Post-Processing for each volume and chapter (new Acrobat interface 2023):
• While chapter still open in Acrobat:
• Click on right top-ish bookmarks icon
• Highlight each chapter bookmark and press the "/" key to collapse all bookmarks in the chapter. Repeat this for each chapter. Save PDF via Save As > [save over original version]

That makes perfect sense. But if it’s mostly for making PDF bookmarks, wouldn’t it be nice to have another little place here to “Create PDF Bookmarks: (a) collapsed (b) expanded” ? I’d personally like to have my PDF bookmarks for a Table of Contents start off collapsed to just the first-level headings, much more usable for a big Table of Contents than bookmarks that are expanded and scroll off the page for a long way. 

I guess my question should be rephrased. Why did my Table of Contents look normal even with the styles mislabled in the dialog box Level section that you outlined in red? If that was so, what’s the function of the “Level”? Or was it just that I hadn’t updated to Table of Contents? I’ve been using InDesign for decades and I still find puzzling things in dark corners.