Hi Alex,
The navX-Micro can be powered via 3.3V source, so the level shifter is not strictly required.
SensorKLNavxMicro works with both Rev Expansion Hub and the Modern Robotics Core Device Interface, but the Kauai Labs navx_ftc library works only with the Core Device Interface Module.
The Kauai Labs PIDController in the navx_ftc library from Kauai Labs is designed to work w/the navx_ftc library's AHRS class.
I've reached out to some folks at FTC to see what they recommend as far as a PID Controller for IMU, and I'll report back when I hear something.
- scott