This is not crafted its loot gen. IF so this is a joke. I wont be using augments unless i craft the item. This use to be level 3 as loot gen.
Several updates ago they made an ML pass where lootgen ML was made the same as crafted. So now skill +13 items are ML11 instead of ML13, etc... In that context, I'd say your ring is indeed the correct ML for lootgen.
And yeah, yellow augment lootgen/crafted items are absolutely nonviable for low levels.