There is none at least in 3A.
You have 6 districts yet District champions were not wrestling the last placed individuals from other districts. You had districts sending 6 kids and yet 1st place district champion wrestled the 4th place wrestler from the same district the very first round of state tournament.
In a couple places you had district runner ups wrestling district champions 2nd round of the tournament

How District 1 gets 10 kids in yet placers 7-10 in that district don't wrestle a district champion from another district?

State should run only by how you place during the tournament. If your a district or Regional champ and you are a state placer you get seeded number off that if you are the Champion otherwise it falls into placing at that tournament.
Top 4 of a district should not run into each other until Quarter finals/Semi-Finals due to 6 districts