Varshan Loot drop Bug?

So I have been running Varshan and I have noticed that Frostburn Unique always drops only as a sacred and never ancestral on Tier4. Is this by a design or a bug?

Same goes for loot as a reward from Nightmare Dungeons. Even when I am running lvl 100 I get for a reward sacred items, why? I thoguth that this was resolved with patches? If there would be a crafting system that would require even the lowest lvl items that would make sense but in current state it doesn’t.