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For certain weekly events, a quest appears that rewards upon completion a "Cache of Uldir". Two weeks ago, the item level reward was from Heroic.

Under the item it shows different levels, such as raid finder, normal, heroic, and mythic.

How is the item level reward determined for the Caches of Uldir?

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It's simple: Timewalking events (for dungeons in past expansions) are ALWAYS Normal for the latest raid, which is now Uldir and with patch 8.1 will change to the recently announced Siege of Zuldazar. the Mythic Dungeon event (for dungeons in the current expansion) is ALWAYS heroic for the latest raid. Items can still warforge (+5 or +10 itemlevels), titanforge (+15 or more itemlevels), gain a socket or a tertiary stat (speed, leech, indestructible or avoidance) in accordance with the rules for the item the cache gives you. Currently, there is no way to get a raid finder or mythic cache.

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