all depends on the device, in my experience there has been little to no discernable difference in illuminance levels between 0x01 and 0x03, certainly nothing worth getting crazy over.
If they’re anything like the color bulbs, there’s no difference. Way to bright as a nightlight on level 1. The only bulbs that I have found to dim that low are Philips Hue rgbws and white ambiance. I haven’t tried the white non tunable bulbs.
You could change to the Generic Zigbee driver and see if there is a difference as that driver will set level to 1, or zero for that matter. That is what I use with my Sengleds.
Conclusion: 2.2.5 drivers allow for a minimum hexLevel of 0x0C with Sengled bulbs, so levels below 5 have no impact. If 2.2.6 drivers set hexLevels below 0x0C we should know if it's the bulb or driver.
Just tried it and although it accepts and displays Level 1, it does not update the hexLevel. There may have been a slight brightness difference between level 1 vs 5.
It seems to be working well for me with the Sengled (A19 or E26) Bulbs.
But not the (par30 or br30) size bulbs, they don't seem to respect the limit and will dim down to off.