I always find these threads interesting. My daughter competed level 4 last year as a 6 year old and will be repeating this year as a 7 year old. She topped out at a 33AA, was at a gym that didn't really fit her and she didn't do as well as she could have. We switched gyms and she is repeating because they have higher standards there and uptrain quite a bit. I was worried about boredom, but they really do uptrain and when the girls are moved to the next level, they usually have all the next level skills.
There is no right or wrong with repeating levels. I am sure that my daughter could have all her level 5 skills and compete level 5 this year, but she wouldn't do very well. I also know she would be miserable if she wasn't getting to compete, so repeating level 4 while uptraining seems the best idea. She LOVES to be out there competing, would be happy with doing just so-so at level 5, but I think it will be good for her have a good year at level 4 and then be really ready for level 5 when she gets there, instead of just barely doing the skills at level 5. She would have been fine either way.
As others have said, if the gym does a good job of uptraining, the girls can actually have a pretty stress free meet season, just perfecting little things, get some confidence from doing well and still work on the next level skills. Not all gyms do this well (her old gym didn't and while I wasn't sure about level 5, I definitely didn't want to do another year of level 4 at her old gym).
Here are some old threads about the benefits/reasons for repeating level 4, how many gyms do have girls repeat level 4, etc. We have many girls on here that have repeated level 4 for various reasons and I don't think any of them have thought that it was a negative thing. I started a thread about the positives of repeating level 4 because I wanted to get my daughter thinking positive about it. Her old gym had a culture of moving up girls fast and we were very used to that. Rare to do more than 2 seasons (we have 2 a year, spring and fall) at a level, but no perfecting of the levels either.
Link Removed
Link Removed
Link Removed
If your gym doesn't uptrain and keep them challenged, then I would probably worry more about the situation. If they do, then it could end up being a good thing. Good luck to you and welcome to the CB!