The Level 1 college course would likely be a duplicate of the HS course. Colleges look for the highest level reached so I don’t see any benefit of re-taking Level 1 at the CC.
Since college semester 1 is ordinarily considered equivalent to high school year 2 in California, a student who has completed only high school year 1 may not be ready for college semester 2.
E) Language other than English
Grade of C or better in any transferable course(s) (excluding conversation) held by the college to be equivalent to two years of high school language. Many colleges list the prerequisites for their second course in language as “Language 1 at this college or two years of high school language.” In this case, Language 1 clears both years of the requirement. Subject requirement (A-G) | UC Admissions
Even though the OP’s school mentions 2 years of Spanish in terms of selecting the starting level it isn’t a prerequisite since it also says the course is appropriate for complete beginners. At best it sounds like completing Spanish 1 at the community college would get UC credit for 2 years of language.
The OP should look at Spanish 2 and see if it matches the UC prequisite description above.