How does CFP selection work in Dynasty mode?

I am playing a Dynasty and I have no idea how the CFP selection works.

In conference championship week, #12 10-2 Texas State blew out Charlotte in the Sun Belt championship game 44-14. After I advanced the week, they dropped two spots down to #14 and were jumped by 9-3 Illinois and 9-3 South Carolina, neither of whom played in a championship game. 

Where is the logic in that? I now have two 9-3 teams in the playoffs and neither of them played for a championship (Boston College and Illinois) but 11-2 Texas State, who's been ranked all year, gets jumped after winning their conference decisively? Now I don't have a single G5 rep in the playoff when one clearly deserves it.

They aren't even my team, but I would be livid if they were.