Also i noticed that T2 engies can build T2land factories right of the bat
That was not in the base game right?
There are support factories and HQ factories. Support factories are significantly cheaper than HQ factories, have the same production ratings but they are weaker in defense. You need to have a T2 HQ in order to make a T2 support factory. Once you have an HQ of a given tech, an engineer of that same tech or higher can right away build a support factory
To add to what Jip said, it looks like you are trying to upgrade a support factory to t3; you first need to reach the relevant teach tier on your HQ factory, afterwards, you'll be able to build/upgrade the support factories.