NPC loot drops not to correct level

Time: anytime
Context: killing invasion mobs in ashenfell in the valley of the condemned, occasionally an npc will drop loot. 90+ % of the time when they do it is either a level 60 essence or a level 60 gear drop.
Expected: I expected npcs in a level 69-70 area to drop level 69-70 gear and essences
Observed: Instead, I get level 60 garbage drops.
Repro Steps:
1. Go to ashenvale.
2. jump down to the valley of the condemned.
3. Kill npcs until loot drops, pick up the level 60 trash