Hello.

Currently trying to craft som breaker modules from modular routers. But no matter what pickaxe i use, wooden or diamond, the breaker module only comes out as the level of an iron pickaxe. Also not able to craft the module with any enchants on it

Have had the same issue, it's a bug with Modular Routers. They've fixed this in 12.1.1 MC-1.20.1 on the 24th Jan but the pack needs to update it.
https://www.curseforge.com/minecraft/mc-mods/modular-routers/files/5056687