Since this was brought up and discussed in the Region tournament thread and it was unclear how it happened, I decided to do some investigation on the NDHSAA site and this is what I found:
"Three whistle crews will be assigned to all region and state tournament games. After selection
by coaches’ ballot, the assignment of officials for regional games shall be made by the
tournament manager. Said assignments are to be made by the manager one week prior to the
tournament and officials are to be notified of their specific assignments immediately thereafter.
Management is requested to provide two passes for each working game official."
What I take this to mean is that the state assigns the region officials based on the coaches voting and then the tournament manager is in charge of saying who gets what games in the tournament.
I couldn't find anything in the Basketball regulations that talked about Districts (Maybe that's because Region 7 has no districts, thus the state allows the districts choose for themselves.)
This may be a change from what happened in past years, but this is what happened this year for sure.