OK, so we have (at least) three different usages of "level". I'm not sure that everyone is talking about the same thing.
Firstly, there's difficulty levels, which reflects player ability and is usually set at the beginning of the game and may be changeable during the game. I've already said why I think that should exist.
Then there's levelling up, which means that the character you play gets more powerful as the game progresses. For a Cyberpunk game, I'd expect this to be by acquiring skills to a certain extent, but also to be by acquiring augs, better weapons, whatever. So yes, dynamic. And yes, it should exist. And yes, it should be possible but very difficult to play the game without levelling up (like DX:HR Factory Zero playthroughs).
And thirdly there's level scaling, where a specific enemy scales up as you do, which would mean that if you meet those five guys in an alley an hour in, the ease of killing them is similar to if you meet them 40 hours in. I don't think the game should have that - if you come face to face with the wrong guys too early, you talk your way out of it, or run away and hide, or you die. CDPR games in the past have been designed that way, TW3 is going to be designed that way and hopefully CP77 will too.
So yes to difficulty levels, yes to levelling up, no to level scaling.