@LaurenVanTalia
Is your course prepared by instructional designers or someone else and provided to you? From your screen shots, it looks like the team the developed your course has made the decision not to require those indented (level-2 as you call them) module items.
That is not a Canvas issue, it's something that someone at your institution would have to address.
This site is a global community of Canvas users and a way to reach out to Instructure and Canvas, but we don't have the ability to make those kinds of changes at your local institution.
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