Couldn't be bothered looking for the Original League Draw posting that referenced Quality and friends....so I'll just post here and Nik will see it.

This Season my two alt teams were on the same server at Level 2.
(Admittedly they have other friends at various levels (who gift and I wasn't prepared to remove them).)

Celtic Rangers' only level 2 friend was Sherman AFC and Sherman had AN Other lvl 2 friend.
They failed to get drawn together. Sherman AFC were 4Q above CR.

If I manage to avoid friendships on both I'll see again what happens at lvl 3.