Everyone is in the PP drawing with their 1st choice.
Everyone that didn't draw that hunt is then moved to the Random draw and their 1st choice is still active, but, you will be sorted by a different random number. (you get 2 when you apply, one for each draw) They go up the list of the 1st choice guys till they run out of tags or applicants.
So, if there are 100 tags and 99 1st choice guys, 75 guys will draw in the PP draw, and the other 24 will draw in the random draw. If only 74 had points, one guy with zero will draw in the PP side and the others will draw in the random.
You're sorted by points first, then your random number in the PP side, re sorted by the new random number in the Random draw. WY is a low number state, they go up from zero when looking at your random numbers.
To answer your question, they look at every 1st choice before they go to 2nd choices.