Previously, when I hit level 20 (level cap) I used to get Power level +2 legendaries on valor/glory rank up in the crucible.
Once I then also reset my valor rank once, I then started getting only Power level 500 items which have a level 43 requirement.
That was season 4.
I have not reset my valor rank in season 5 and am still just getting power level 500 drops now
If I were to buy the DLC sure I could then use those, but it seems rather pointless (other than for breaking down to shards purposes) to grant me items as rewards that I would have no hope of using as a F2P.
I posted this on reddit as well, and was told to make a bug report topic about this.
You can check my vault which has a number of Power Level 500 items for my Warlock (I don't have any other characters)
Note this doesn't happen for Glory, just Valor (but then I haven't ever reset my glory rank)
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I feel you, I really wanted to try the anonymous autumn I got with fullauto, highcal and rampage