operating communication lines above the supply voltage of the sensor may cause premature failures unless the pins have been designed to withstand that
if you want you can try contacting Keller to ask if their LD series sensors have 5V tolerant I2C pins, since voltage limits are not provided in the sensor datasheet
Mixing 3.3V and 5V I2C communications may result in communication errors
the 5V side may not properly detect “HIGH” signals from the 3.3V side, or
the 3.3V side may not properly detect “LOW” signals from the 5V side (if it can’t pull down low enough)
as is the Keller LD communication document (linked in the Bar100 Technical Details) already specifies that the sensor has tighter logic level tolerances than the I2C specification
It’s possible that using the Bar100 with 5V I2C from the Arduino may have already damaged the pins - if possible I would recommend testing it with a 3.3V device like a Raspberry Pi or Pixhawk to see if it works normally there. If that works without issues then there’s probably an issue with your level converter, in which case I recommend you contact support@bluerobotics.com to sort out a replacement / refund as relevant.