The developers have given an update on the official WoW forum about the rewards of the Mythic-Plus dungeons in the first ID of WoW Shadowlands Season 1 and the rewards from the Great Treasury. According to this, the maximum item level at the end of a Mythic-Plus dungeon in the first ID will have a cap of 203. This is equivalent to a +10 keystone. As you can see in the updated Mythic Plus Rewards Loot Table, at least for the maximum reward at the end of the dungeon, a higher difficulty level isn't worth it anyway.

Higher levels only become interesting for the Great Treasury. There is no cap for this one in the first ID. Whoever completes at least one +14 dungeon will receive an item with item level 226 from the Great Treasury in the following week. PvP rewards for conquest points are capped at item level 220 in the first week, PvP upgrades in the following week have no fixed cap. Those who manage to reach the rank of Duelist or higher will receive a 226 item from the weekly treasury reward.

Blue Post

Mythic Keystone dungeons and ranked PvP are opening with the beginning of Season 1 tomorrow, and there are a few aspects of the first week of the Season to highlight.

During this first week of Mythic Keystone dungeons, there is a cap on the increase of item level of end-of-run loot. That loot will stop increasing at Mythic Keystone +10 for this first week, which is item level 203. However, the Great Vault will be uncapped the following week, and loot from the Great Vault (on December 15 in this region) will reflect successful completions achieved during the week of December 8. The Great Vault will award item level 226 for completing Mythic Keystone +14, and other completion item levels can be viewed in the Mythic Keystone tab of the Dungeons and Raid window once the season begins.

For this first week of the Season in PvP, item-level upgrades of Conquest equipment are capped at item level 220, requiring Rival (rank 4). Starting with the second week, (again that's December 15 in this region), item level upgrades of Conquest equipment are uncapped. There are no caps on the Great Vault's PvP considerations. Duelists (rank 5) or higher will receive item level 226 equipment from the Great Vault.
Good luck out there!

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