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I figured out how the Level vs Power Level works. The picture in the earlier chapter tried to explain it but translation or who author wrote it was poor. From my understanding, Combat/Power Level is flat damage like a strength stat. Where Level on the other hand is all stats like HP, MP, Stamina, etc. Basically, he could 1 shot a lot of the thugs but he would also be 1 shot so he can’t realistically fight them all at once.