The damage cap is not a bug. Please see
https://wiki.project1999.com/Game_Me...bat_and_Damage and scroll down to “Damage Cap.” The damage cap will lift at levels 10, 20, 30, and 40.
If the damage cap should actually be something else, you will need to post evidence thereof. The devs here are very careful never to make changes based on things like “I remember it was this way,” only on concrete evidence such as webpages from that time range, dev statements, patch notes, etc.
Some people say “hope this helps” sarcastically, but I really mean it.