lol im at the end of chapter 4 @ level 35~, im pretty sure im ten levels behind, since sidequests are recommending level 47.
You're probably not underleveled. That particular side story means that you're probably further in their progression than the game intended you to be. I managed to find a slight continuity error because I had done a side story that quickly glanced over some very story important details, which were later explored in detail in an actual story scene later on.