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What's the difference in levels? Is the lower grade position on a ladder? Is it a common job series in the government? Are both positions competitive service or excepted service?
Consider the promotion opportunity between job series. People say take the 12, but remember you can be there for years/decades also. The 10 potentially can be for one year, then 11, and 12 the next depending on agency and job series. Like you said it’s more competitive and aligned with what you want to do. If after a year you can still go and apply to other agencies/roles with the experience under your belt.
When I was a fed, I was 11 and was offered a 9 step whatever for salary match (I had less experience in the field), but it was also because after one year I would’ve maxed out the series and forced to apply out for promotion/growth anyway.