I say yes. After watching a National Homebrew Conference seminar in, I want to say 2017 called "In it to Win it", I learned about diluting beers to make other beers for comps. The trick though, they do it in bottles. The guy brewed a Munich Helles, then when bottling would add 2-4 oz of carbonated water to the bottle before adding the beer, depending on what style he was making. I want to say with 2 oz in the bottle he entered the Helles in International Pale Lager and and American Lager, 4 ounces was entered as America Light....and he medaled in every one of the categories.
I have tried it myself and sure enough, 5 times I entered a diluted Helles into International Pale Lager, all 5 times it medaled, 3 1sts and 2 3rds and one of the 3rds was a 44 point beer. As American Lager, it did not medal as much, but got a couple.
But I gather you are talking in the fermenter or keg...and again I am going say yes. Was just talking last week with someone who does it, with the exact beer you want to dilute. Can't find the thread, but he basically gets 9 gallons post boil, 5 gallons goes into one fermenter for say the Czech Premium, 4 gallons goes into the other fermenter with 1 gallon of distilled or RO water to dilute it to. I am sure he brews that first beer to be at the top or even above the max for OG, IBUs etc. so that when diluted the 2nd beer will not be too weak. Doing it in the fermenter also gives you the opportunity to dry hop if you think it needs a little more hop aromas. The guy who does this is another home brewer who competes and wins around the country.