I think this is a general problem since the update. The app "DRM Info" unfortunately also only shows widevine l3. So it will potentially affect all streaming apps.
Amazon Prime doesn't show what resolution it's running at, but the picture doesn't look great either

10 days later

sybilsystem did you need to do anything in addition to updating GOS? My system is still showing L3. I've restarted the phone and updated to the latest version of Netflix, too.

    guser39 I just updated the OS and now Netflix is working for me. I didn't have to do anything. Just update and restart.

      other8026 are you certain that you are L1? Netflix was working for me as L3.

      I probably need to sign out and clear data but I'd lose a bunch of downloads.

        guser39 it works for me as well after reinstalling netflix app. Try cleaning the cache/reinstalling

        For @guser39 and others who are on latest release and it's not L1 for them, please clear the app's storage, and you should be good to go. If not, please let us know.

        guser39
        I uninstalled Netflix first.
        Updated GOS
        Installed and login.
        It worked.