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I created a new level 1 ticket type, however, it doesn't behave like a epic.
Meaning I can't nest tickets within it.
Is there something beyond the document of creating new epics, on how to get them to work?
Do you mean you created a new issue type, and added it to the Issue Type Hierarchy at the same level as the built in Epic issue?
Adding a new issue type to that level does not result in that issue type having the same functionality as the built in Epics. That hierarchy level information is used by the Advanced Roadmaps Plans. From a functional perspective only the built in Epic issue type can utilize the built-in Epic functionality and be recognized as an Epic.
Technically you are not creating a new "level 1" type of issue when you add the new issue type. Notice you have options to create only level 0 and level -1.
The arrangement of issue types in the issue hierarchy is leveraged only by the Advanced Roadmaps Plans functionality currently.
I provided a link to a related change request in my second reply, above.