Well let's see a coach happen to place a backup wrestler in for seeding who happened to only compete in part of the varsity season against lesser opponents and ends up with a decent record. That wrestler then gets seeding anyplace in the bracket, but for your strategy at least he was seeded and that's all you need since that "strategic replacement" will be moved to the 6-seed anyway. The actual seeds likely ended up correct at the seed meeting according to the IHSAA criteria and the wrestler submitted by the coaches. But then those seeds get shifted later Saturday morning when that coach pulls their original seeded guy for the actual "strategic replacement" knowing he will move by rule to the opposite side of the bracket from the #1.
Saturday morning that coach removes that original wrestler and replaces them with their "strategic replacement" who was their varsity most of the season. That "replacement" possibly had a record that would have ended them up in the 4th or 5th seed at the seed meeting which the coach was worried of because them into the #1 in the semi-finals who they believe the wrestler will have a hard time beating. According to the rules the replacement moved to the 6th-seed and ensure they are away from the #1 rather than chance that occurring at the seed meeting. This puts the "strategic replacement" on the side of the bracket with the #2 and #3 seed. The coach feels their good “strategic replacement” wrestlers can beat the #3 in the quarters and likely can at least have a good shot against the #2 they have in the Semi-Finals. So the strategy often gets the team another finalist and the wrestlers a better spot for Regional too. The coach sets this up when their most worried about the #1 but think they have a shot at the #2/#3 so it can help the individual placement, individual chance in regionals, and their team score, and this replacement strategy helps to improve those odds.
Again, per the rules, the coach can replace someone in that way. But these are "strategic replacement" not a surprise one due to something occuring in practice during the later few days before Sectional. Sure the coach may not be concerned about how thid affect anyone else or another team, but in the larger picture it shifts the bracket often causing two of the expected regional-level guys to face each other in the blood round with one now not getting out.
Sadly can't fix the fairness and honesty of all coaches when seeding at the meeting and no rule can fix that. But there is a set criteria in place which is about as objective as you can get. We can however look to improve upon a loophole in the rules that allow for a strategic manipulation in the brackets after the fact that leads to an advantage for the manipulator at the expense of other regional a ability wrestlers. Simple fixes to that would be to say "no replacement," "replacement is drawn-in," or the "replacement goes to the 5th seeded spot." Even the last two seem too much of a risk to play the "strategic replacement" game with cause you may still end up on the #1 seed side in the end. And I think the coaches association could at least make the argument to the IHSAA about some of these options as a more even and fair approach without making a big deal to the IHSAA of this being due to certain coaches manipulating the system.
But, I feel like you already would understand most of this as it has occurred multiple times in our sectional over the last several years. Something tells me again it may happen once or twice this Saturday too. Although we may find that the extra added depth this year may make that strategy a little more of a gamble than years past.