I tested that theory too, but I don't think that it either.
Example
Rugged War Leggings: level 23
Thermionic gel suspension -grade 2 crafting mat
Nextor crystal - grade 2 power crystal
Sacred artifact fragment - grade 2 artifact fragment
Returns mk-3 mat. I can't figure it out and I don't see anything online.
So far
level 9 = mk-1
Level 13 = mk-1
Level 15 = mk-2
Level 19 = mk-2
Level 21 = mk-2
Level 23= mk-3
That's as far as I can go so far. This is synth weaving btw