If three or more teams are tied, steps 1 through 8 will be followed until a determination is made. If only two teams remain tied after any step (or sub-step), the winner of the game between the two tied teams shall be the representative. If three or more teams remain tied after any step, move to next step in tiebreaker with remaining tied teams.
I think the bold means that if any two teams have the same division record it goes back to head to head. Wisconsin goes in your scenario above based on 5-1 division record.