Let me check
I'm not seeing an issue on my side. The change was that previously things that could fly or swim were being allowed to be used before their proper level so that was prevented - a chat message should always state that. When I have a druid of level 10 - all things work - when I have a druid of level 3 none of those things will work. And of course NPC's don't check anything for wildshape and is left to DM to decide what can be transformed into.
And nothing has changed about it needing to be a druid of level X to do anything. That message is stating Baazrag is a level 0 druid (meaning not a druid) which should never work. If there is something I'm not understanding see if you can contact me on discord and we'll see what is what.
[Post edit]
Just had someone independently try V1.21 and its working fine. It seems there is something off with your character as those level checks look to see what level the Druid class is defined as - in multiclass of course that will be whatever the druid level is.
V1.22 - Feature - added new option "Validate Wildshape Rules (if off limited by DM)" which will be "on" by default (original behavior). If you turn it off it means any wildshape restrictions will no longer be applied and host can put in any NPC they choose for transformation. Turning it back on will immediately start applying the rules again.
People have been asking for this for a while so decided - what the heck why not.
Are you running any other extensions
I was able to repro the issue on 1.21, will upgrade to 1.22 and test.
BRAND new druid PC, only extension loaded is Poly.
Leveled up druid to level 5.
I was able to drag a creature from the PHB. Worked fine.
I then clicked on the box below the "Select Polymorph" one where you list the forms that are registered for the player and clicked the only one that was there: Wild Shape.
Since then it won't accept any shape and the shape I had dragged before dissapeared ...
We will have to get together on this as I can't duplicate it, I must be missing something key in the reproduction steps as my "Ape" and "Baboon" test NPC cases worked fine when I reselected Wild Shape.
If I pick Wild Shape - or any of the other spell/feature/traits in the lower drop down box then it will limit the selection of the upper drop down to only things that match the criteria for what you selected (its one list covering them all but only things that match the current selected box will show up).
So what happens when you pick standard WOTC NPC's like Ape and Baboon and drop them into your token field? Do they work - does selecting the Wild Shape then just leave them there and still able to transform? If so, then we are looking at a problem with the NPC's your using and if they match the relevant criteria for Wild Shape - or something else is going on that I've just not duplicated.
PM me if you want to setup a discord chat sometime this weekend - and I'll see if we can get together.
[Note: I assume this is not something crazy like unzipping things in the delivery directory which is evil incarnate ;) Mention that just in case, you never know. ]
I've disabled the check and it works now. Will make time tomorrow to test things with you if you want.
BTW I've used standard PHB monsters to test (like rat and such and still same issue).