You don't need to get rank 1 and rank 2 as far as I can remember. You just use the rank 3 item and you get rank 3 straight away.
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You didn't. This is Blizzard, never forget that. They didn't outright give everybody r3 essences if they have them unlocked on their mains. They give you a currency you have to grind to then purchase a rank 3 essence on your alt. Time still needs to be wasted, but maybe it'll be a week or two less than the normal way of obtaining the essence. Still a grind, as with everything Blizzard does.