Could be true. I haven't tried Level Up.
What does Level Up do with Backgrounds that is different than 5E?
the main differences are
1. they're where you get your starting ASIs (as opposed to floating or racial ASIs)
2. they provide a bit more choice in the skills they give (typically you'll get a set skill and then a choice between two others)
3. they give some detail on how the background might effect future play
so, for example, compare the acolyte background from each game. in 5e, you get proficiency in insight and religion, a couple languages, possibly some gear, and assistance from followers of your god. some personal characteristics are also suggested. in level up, you get a +1 to wisdom and another ability, proficiency in religion and either insight or persuasion, a language, some suggested gear, and assistance from followers of your god. on top of that, it's pointed out that smaller settlements might turn to you for help with criminal or supernatural matters, and that after helping your faith enough you could be promoted within your order, provided access to leaders of it, and given the free service of up to 4 acolyte NPCs.
in short, level up backgrounds tend to have a bit more meat to them, and advice on tying them into a wider campaign.