I think I saw this all explained over at vbulletin.com It has to do with only having forumdisplay_level1 and forumdisplay_level2 templates (not sure if it was forumdisplay or forumhome or something else) and what you are asking for is forumdisplay_level3 which doesn't exist and so it reverts to level1. You need to make a level3 template. You should go search over on vb.com for this subject.
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