It's totally inappropriate and I don't really understand why it's a thing.
I don't really agree with the "womanface" idea, but even so, what drag is about at the most basic level is how sexuality interacts with social conventions about gender presentation and what is attractive. That is why it comes out of gay male culture, and why it's often very sexualized.
But I, and many other people, would not say that is appropriate for kids. More than that, I don't think elementary school kids "get" it. It makes no sense to them and has no value. It's a type of entertainment that depends on a more adult understanding of human sexuality.
There is the addition that drag is very much associated with the club scene which is, again, not appropriate for kids.
What's more, this is not a viewpoint that is limited to conservative religious fundamentalists. My BF who is a gay man, who as it happens works with kids, thinks the whole idea is shockingly appalling. He can't believe people think it is ok or a "pro-gay" thing to do. And that is not an uncommon perspective. But for some reason whenever anyone complains this is picked up as being the opinion of homophobes.
Publicly funded schools serve everyone. They may serve some families who love taking their kids to drag. But they also serve families who think it is a bad idea, families who think it is anti-woman, families with conservative religious cultures.
So where the heck do they get off making the decision about this as if they have some kind of moral authority? Kids who want their kids to see drag queens can take them. But on highly socially divisive questions schools need to keep their noses out.