Calling an API without hypermedia a “level two REST API” is like calling a lettuce and tomato sandwich a “level two BLT”. You’re missing an intrinsic piece of the puzzle and anybody actually expecting a BLT is going to be disappointed. Why are people so adamant that they absolutely must call non-REST APIs “REST”? Names are free, you don’t have to hijack the name of something else!
they say REST, they mean 'transport over HTTP and JSON payload'
That is what it does mean. Unfortunately creators of a term do not get to control its usage I suspect the number of Roy Fielding approved implementations would likely be very small. Furthermore, I don’t think it matters - there is no sin in RPC.