L2 devices only execute cryptography operations within that secure environment, while L3 devices don’t do any content processing or cryptography operations in a secure area of the chipset.
Generally, in order to ensure that streamed content doesn’t get stolen, companies mandate that higher-quality HD, HDR, and 4K versions of movies and shows be limited to the more secure L1 devices
Google’s Pixel phones should be L1-rated devices, but the aforementioned issue seems to be causing them to register as L3 hardware instead