Muffler Temps will be much higher than your sump temperature, hence if the muffler packing suits then I don't see any reason why not. The Sump is not a cooling device, hence insulating it may make the radiator work a tiny bit harder, but no way noticeable.
Keep in mind that if you pack the space, pressure from the plate will be transferred to the sump when you hit things. I guess it's up to you to figure out how much force the sump can handle.
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