"it's a fallacious argument and the mass could be anywhere." Believe lower is likely better for conservation of energy and stability considerations.
I have no particular expertise with Pinewood Derby races, nor have I competed. I am however often invited to advise and judge regional science entrants, and certain STEM competitions such as FIRST. Figure it's how I can assist in my own small way to furthering the educational opportunities of youth...
Agreed that the change in pitch position of the vehicle is a miniscule factor as it undergoes a positive pitch displacement. But by deliberately attaching a mass concentration distant from body center, some energy of the system must be spent in raising that extended mass portion against the force of gravity as the body pitches up. The work thereby extracted is proportional to that optional mass concentration, its distance from a more neutral polar position and the sine function of the change in slope of the track from start to timed finish position. I fail to see how the principal of conservation of momentum could be employed to advantage in this positive pitch rotation. Perhaps if the pitch displacement were negative such as in an outside parabolic loop with gravity assist, but with useful loops you eventually pass full circle and likely must eventually pull out, canceling most all but the vertical change in height from beginning to end and trading potential energy of position for kinetic energy and momentum.
Agreed that random trial and error can sometimes deliver some useful empirical insights in many "real world" or field trial situations. Whenever time, effort and expense are potential considerations you are well advised to employ the scientific method; which is to form a educated hypothesis, then devise a series of tests to confirm or deny that theory. It goes without saying that you are well served to first analyze the situation using the best scientific tools at your disposal, such as the basic physics & applied mechanics in this particular example.