I believe it was intended (and is intended in future updates) that you shouldn't be able to recruit any units until you build a gov't system, however currently when no government is in place you are able to recruit all possible units from any level of government available in that province, so when you built the level three gov't you lost the units available under different governments. I believe Ideally you shouldn't recruit any units in a province until a gov't system is put in place.
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