That reminds me of the level scaling in Skyrim and how awful that was. Ironically, that wasn't the thing that broke the immersion, though. No...It makes no sense to have a "Level 1" thru "Level 100" bandit. They're all bandits, some are just more skilled and better equipped then others.
Random bandit: Hmm, we need to rob someone. Wait, let's rob that guy in full legendary armor who just slew a dragon. He seems like an easy mark, right? #famouslastwords