The character in question is level 71. First noticed this after crafting when I hit said level.
After creating, all items that were produced were still ilevel 70. I then disenchanted the crafted items, and repeated crafting to see if the same issue occurred again (spoiler, it did). The toolbox shows what will be created as being ilevel 71 with appropriate power levels, but what comes out doesn't match. Anything bought from Ragna is also capped at 70.
I then played through one mission, same thing on all drops.
Logged in through PC on steam.
Edit: question answered. :)