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I'm wondering if anyone has done it, my dry storage goes the full length of my kayak.
I am thinking about sealing off some of it, not all of it but enough to where I could have a
4-5 ft ice box inside my kayak. And the other half be dry storage for the usual equipment.
Has anyone done this or thought of it?

$10 bag cooler from Sams with a 2 liter soda bottle with frozen water inside. Less work, less headache down the road, less cost, easier to clean and you can carry the fish from the kayak to the cleaning station easier.

But, if you do built it, post pics please.

But how big is that bag?! I'm talking about having a cooler that can hold a 20-30 lb kingfish or multiple Spanish and reds?

It'll hold 27" reds easy. Kings would be a problem

If I did turn the dry storage into a cooler so you think it'll affect buoyancy?

You're adding weight. Any time you add weight you affect buoyancy but I doubt you hurt it.

There are other options besides altering the kayak. Google kayak fish bags. Here's one example