I played on PS5, downloaded it on Steam today, transferred everything according to the instructions, and when I logged in, I saw that my equipment level was 10, my strength rating was 10, and everything was 10. However, my equipment was still there. I was wondering why my guardian rank had been reset and my character's strength had decreased. I didn't know where to go or who to contact.
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In addition to what ZacTheRuler stated, all things dropped to 10 because Bungie made some adjustments to how power level works, so it wasn't just a drop, but was necessary due to the adjustment going forward.