How often do you find job postings qualifications to be kind of a reach? For instance, if they say “minimum 3 years development experience,” and I’ve got 1, is it worth applying anyway?

Sometimes, recruiting company mentions more years experience just to look good. I've seen companies posting job opportunities which was for fresh graduates, yet they mentioned experience.

Nonetheless, I am of the opinion k one should apply for the job even if you feel under or over qualified. Going for interview or not is another debate.

Food ahead and apply a recruiter said I was entry level but then put me in a mid level position.

If it's a recruiter, apply anyway.
It's its direct to company, good luck. But they usually already know who they are looking for, the reqs are generally a base line for a position they need to refill.

Applications aim to get the best they can get for the worst they can give. If you apply for the opening, go for a talk with them and show them that you are qualified to do the things they ask of you and match several of the qualities they look for, I doubt they'd toss you aside.

Also, it's important to figure out where your development experience comes from. Are you only counting jobs you've had? Are you counting projects you worked on in college? Are you counting potential self-study before you attended said college? Everything matters, you can oversell yourself.