Personal experience here. I think it is hard as parents to see what coaches are trying to accomplish sometimes. There is so much that coaches could be looking for in order to move a kid up. There could be weaknesses that as parents we don't see. Scores are really NOT everything when looking at the next level and the new requirements. Kids scoring 37 in level 4 have clearly mastered level 4, but it does not mean they are ready for level 5. The key is are the uptraining the next level of skills while competing, so the transition to the next level is easy.
The coaches owe you an explanation. You shouldn't have to chase them for it, but often that is what happens. There may be a very logical approach behind repeating, but they need to explain it. You may not agree with the philosophy, in which case you have the right to consider a different gym whose training and advancement philosophy you are comfortable with.
It stinks, I know. Have a conversation with the coaches first. You may see things differently or at least more clearly.