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You mean here?

[t:template,n:sd_ra_g_o_st_2h_avg]
{
doc = "Leg Cleaver";
specializes = base_sword;
[aspect]
{
model = m_w_swd_017;
}
[attack]
{
f damage_max = 233.000000;
f damage_min = 78.000000;
is_two_handed = true;
}
[common]
{
pcontent_special_type = rare, unique;
screen_name = "Leg Cleaver";
}
[gui]
{
active_icon = b_gui_ig_i_ic_swd_007;
equip_requirements = strength:26;
inventory_height = 4;
inventory_icon = b_gui_ig_i_w_swd_129;
inventory_width = 1;

I don't see anything like what you describe, beside the strength requirement to equip it. Surely this doesn't control where it can drop. Some armors have a strength requirement of 15 or 16 but are quite high level and can be found in veteran/elite places rather than in normal with the basic 15/16 STR items.

Am I looking in the wrong place?

Even then, I feel like there has to be something else which governs which item can drop where, because clearly there's a certain range of items you find in each place. For example normal grescal will never drop a dragon wing, but will drops lots of steel deaths, while veteran chickens will drop lots of dragon wings and never a steel death.