Approve unless allowed groups setting

did you try it with just TL1? lower levels are inherited (ie: TL3 = TL2 + TL1 +TL0)

This setting is working as expected for me. I set it to TL1 like yours. when my test user was TL 0, their post needed approval

as soon as I changed it to TL2, they could post (and the old un-approved one stayed in the queue)

This is a good related bit of reading:

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