Assuming you’re asking about the progress bar that currently says “10 of 36 kanji passed”, “passed” means “got to guru”. Another way to look at it is that it’s the number of kanji that shows a full green bar below them instead of individually filled squares.
For the vocab, assuming that’s level 4 vocab, you likely haven’t learned most of them yet (as it indicates) because unlocking them requires getting all their kanji to guru.
I don’t want to hammer on these points too much, but this is a good opportunity to point out some things about the vanilla UI are not completely clear.
It’s not clear what kanji are considered “passed” and which ones are not. The progress bar being full for each kanji is inadequate. Even for someone like myself who knows what it means, I can’t look at this picture and get a quick glance of which kanji are where. Dashboard Progress plus means I don’t have this problem on my own homepage.
The level page showing lesson progress is unclear that it is lesson progress and not guru progress. There’s nothing to indicate this on the page.
I also was showing as level 3 in the header button at one point. It has since gone away and I don’t know the source of the issue, but perhaps it’s a default or something before a counter was updated?
In other words, @seanblue’s explanation is good, but the UI should do the explaining and I think it misses on these counts.