I've made mushroom tinctures many times, but I've never tested the alcohol content during the process. I'm not sure why the alcohol content went down. I'm also curious what species of mushrooms you used.
At any rate, at this point I would probably add water, simmer it and do the second extraction as per this video by Tony at Freshcap Mushrooms:
https://www.youtube.com/watch?v=pjbmb4JLBTY
This video is probably the best one I've seen on this topic because it's short, simple and easy to follow the instructions. The double extraction process is best for medicinal species such as lion's mane and the reishi/ling chih group- you'll get the full spectrum of medicinal compounds. Good luck!