Well I agree
Especially if we were talking about OW criteria as well (but we are not)
I think either both the #1 seeds should have a 1st round match or a first round bye
So that either puts that 5th place as a 4 seed or the 3S seed moves to 2N the 4S moves to 3S and the 5S moves to 3N and that gives both 1st place seeds a 1st round bye