I'm not the biggest Sanders fan, but good on him for being consistent with his perspective on dynastic politics and nepotism.
This isn't a grand statement on dynastic politics and nepotism. He's refusing to support his son because Levi is: a) rather nutty, and thus a potential media albatross around the neck of Bernie's entire movement; and b) semi-estranged on a personal level.
Bernie is clearly trying to keep this from becoming a media story of either "Fight in the Sanders household as Bernie refuses to back son for Congress", or "Bernie still supports son in Congressional race despite crazy thing #47 he's now said.
Yeah, Sanders had no problem supporting his daughter for Burlington mayor.