This is intended. You are supposed to be stuck at tier 2 until you get a ring from the daily chest, or spend 40g on a book.
Source (dev post):
https://forum-en.gw2archive.eu/forum/game/dungeons/Fractals-11-Loot-error-please-FIX/page/2#post806505
Wouter
Council of Deus eX Machina[DxM]
Gunnars Hold
(edited by Wouter.4715)