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1 level in cavalier does not gives you progressing mount because
This mount functions as a druid's animal companion, using the cavalier's level as his effective druid level.
means that cavalier's Cavalier Level is his Druid Level, right?
Correct, the mount doesn't progress beyond a 1st level druid companion unless you take levels in another class that gains a horse animal companion. The Boon Companion feat can compensate for this up to 5th level.
It works just like a level 1 Druid's animal companion. (Just with a limited choice of animal)