Nope, that is exactly as BT1886 is, when used for display set-up. There will be change in colour values.
But, no material is mastered with BT1886, so it really is not a valid format to use - Rec709 is the industry standard for mastering.
I do not understand the 'digital levels being crushed' though.
There is no reason for any crushing, is the display is set-up correctly.
The best is to e-mail me the .bcs profile file to look at - I can check for issues.
The i1 Display pro setting are fine - no problem there.
Steve
Steve Shaw
Mob Boss at Light Illusion