Mike Schopp had the right idea of having the draft ordered determined by order of being eliminated from the playoffs so there’s no incentive to lose more once you’re out of it.
Generally it means that they are better than their record and are likely to improve. One score losses are fluky and contrary to popular belief generally even out over time.
In that scenario, the Bills would win the tiebreaker because of a better division record and split head-to-head. Patriots will have lost to Bills and Dolphins in the division. Bills will have only lost once in the division, to the Patriots.