I tested with one of my RL apps, because I thought this may be related to the issue I am having with the indicator not showing active, but I’m not having the issue you’re having.
In your device events, it looks like the setLevel command is getting sent, so may be an issue with the device receiving the command or reporting back the updated level. Have you tried to power cycle the device? Is it Z-wave or Zigbee? Maybe do a re-pair?