If your account was reset unexpectedly to Level 1, and you’re missing purchases and progress, your console account was likely disconnected from your Epic Games account.
Your Epic account is what holds all your saved data, not your connected console account. If your console account is disconnected from your Epic account, the next time you go to play on your console, it will have no Epic account to use. So, the game asks you to sign in or create a new account. Choosing not to sign in creates a new Epic account that has no data so you can keep playing. You can fix this issue by reconnecting your console account to your Epic account.
There are a few things you need to do to reconnect your console account and resolve the issue:
First, you need to register your account so you can then disconnect the console account from the Epic account that was newly created.
When you register your account, an email is sent to the email address you provided, prompting you to verify the email address.
In the verification email, click VERIFY YOUR EMAIL, or copy and paste the link into your browser to go to the page. You’ll receive confirmation that your email was verified.
When your email is verified, you can disconnect your console account from the Epic account you registered. Then, you can connect your console account to the Epic account that has your data.
When the console is disconnected, you can re-connect your console account to the Epic account that has your data.
Your registered Epic account is now re-connected to your console. The next time you play, you should see all of your progress and purchases. Have fun!