There's a lot of different applications for kettle exchangers. The process control strategy depends on the specific application, and for some applications there are different options for control.
For the application discussed here, the purpose of the kettle is to chill the NGL (control the NGL at a specified temperature), and that's being done by vaporizing propane in a refrigeration loop. There are two basic process control strategies for the propane side of this exchanger. You can maintain a fixed liquid level and vary the pressure (mentioned above by StraightOuttaND), or you can vary the liquid level and maintain a fixed pressure. Either one will work.
The first option (fixed level) appears to be the one being used by the OP, and he asked why this fixed level is set at a point below the top of the tube bundle. I don't know why that's being done, but I seriously doubt that it's really necessary. If the kettle was designed properly you should be able to operate with the bundle submerged. Operating at a fixed level below the top of the bundle is a waste of surface area. You wouldn't want to design a kettle with that plan in mind - it's wasteful. Perhaps the plant experienced some entrainment of liquid propane out of the vapor outlet nozzle, and they decided to drop the liquid level to reduce the entrainment. However, it's almost certain that this propane vapor is passing through a liquid KO drum before re-entering the refrigeration compressor. Another possible explanation is that the exchanger is operating at a heat load which is much higher than design. If so, the propane flowrate is higher, and maybe this was causing excessive entrainment, overloading the KO drum.
If none of these explanations are true (no liquid entrainment problem on the propane side experienced) then there's no need to maintain the level below the top row of tubes.