When Dom got into national tournaments, I had to really go digging to find the documents that governed seeding and qualifiers.
Even when I had them, the procedures have always been labyrinthine.
Try explaining the rules to non-wrestling friends who want to follow along.
I'd favor a single tournament over two days.
Day 1: Challenge tournament, double elimination, wrestle back to third
Day 2: Best 2 out of 3 finals, true second, if necessary.
Anything that makes it hard to understand is a bad idea.
For example, the new rules around the U23 team selection.