I am assembling a B engine 500 cbi for race and noticed that the windage tray was almost an inch or slightly more away from the crankshaft at its closest point. I then set a non stroker windage tray on and looked again, it was about 3/8 inch away from the crank at its closest point. My question is , are the any advantages or disadvantages to being closer or farther away from the crank with a windage tray? Any knowledge or thoughts on this ?

You want the tray to keep the sump oil away from the crank. Some of those "stroker" trays are way too deep and won't even fit inside some oil pans.
If the tray is deeper in the oil pan than the oil level, it is not doing anything.
So the closer to the crank is generally better as long as the trays baffles can get rid of excess oil around the crank.

Thank you for the wisdom. after looking at it again 1 inch away from the crank is way too far. Will go with the standard windage tray .

Have you thought about buying or building a crankshaft scraper, they really help

My 4.25" stroke crank with 7.25" counter weights cleared a stock mildon replacement windage tray.