Hm....power levels have always been a bit of a mess, and always rather irrelevant. They're pretty pointless too, when we we're dealing with all manner of gods, time or dimension traveling robots, demons, and more. They even had a literal storyline about a character (Omega) being really confused about how things don't conform to his power level expectations. Sometimes our characters can fight gods, otherwise we're forced to flee by random soldiers. It's best not to worry too much about it.

If we do want to discuss the point more though, our characters do have 'power on' mode and 'power off mode'. In 'power on mode' we have something else backing us like Hydelyn's Blessing, Hraesvelgr's Eye, a boatload of corrupted light, etc. When in those circumstances we can basically 'exceed the limits' and fight stronger opponents. When we're not in that mode, we can be defeated by tough opponents like Ran'jit or Zenos.