I stand corrected, I was wrong;
Upon further reading in the FSIMS I found the following:
H. Issue a § 61.75 U.S. Pilot Certificate.
NOTE: Section 61.75 limits the issuance of the aircraft rating on the U.S. pilot certificate to the private pilot certification level. However, if an applicant holds a § 61.75 commercial pilot certificate that was originally issued before August 4, 1997, that person may retain that pilot certificate; however, all ratings issued on or since August 4, 1997 are issued at the private pilot certification level.
I can only assume that it is at the discretion of the FSDO inspector since it use the word "may" instead of "must".