A one or two-level navigation isn't too hard to design. However, a three-level navigation presents extra complexity and challenging UX issues. For one, it isn't easy for users to perceive which level they're navigating to when every level is vertically stacked.
Since all the levels are in close proximity, there isn't much visual distinction between them. Expanding a level 2 item looks like you're expanding a level 1 item and vice versa. As a result, users must constantly check if they're on the right level when navigating.