What does Dwarven Digging reward?

Dwarven Digging gives a choice of Fortified Bindings, Rough-hewn Kodo Leggings, 700 experience.

What level is Dwarven Digging?

Its level has not been recorded yet; it shows once a player accepts it with the addon running.

No. The quest exists in Classic Era as well.

World of Warcraft: Forever · quest

A quest in World of Warcraft: Forever in Mulgore and turned in to Baine Bloodhoof. Recorded by 1 player running the addon.

Level, giver and objectives show once a player with the addon accepts the quest.

Item	Given	Item level	Vendor sell
Fortified Bindings	as a choice	10	42c
Rough-hewn Kodo Leggings	as a choice	9	54c

What does Dwarven Digging reward?: Dwarven Digging gives a choice of Fortified Bindings, Rough-hewn Kodo Leggings, 700 experience.
Where does Dwarven Digging start?: It was picked up in Mulgore.
What level is Dwarven Digging?: Its level has not been recorded yet; it shows once a player accepts it with the addon running.
Is Dwarven Digging new in WoW Forever?: No. The quest exists in Classic Era as well.

Source: what players running the addon saw in the quest windows; the quest text itself stays in the game. Every quest seen · Mulgore