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Approval Fails when 2nd line manager does not exist (even though manager level is set to 1 in rule)

Summary:

We have just noticed that one of our approvals fails, because a second line manager does not exist within the manager hierachy of the proposed line manager that gets the FYI notification. However, we have set the level to one, thus we expect the system to only consider the immediate proposed line manager and ignore any line managers higher up the org. chart.

Content (required):

Question: why is this happening and how can we force the system to just consider the first line manager as we set it in the rule?

Version (include the version you are using, if applicable):

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