Does clonazepam work for bruxism and sleep?

Yes. One of my "go to medications" for this problem. Medication, soft diet, antiinflammatory medications and a mouth guard are also very helpful.
Clonazepam & Bruxism. Clonazepam has shown to be effective for treating bruxism and sleep, the problems of addiction and drug tolerance make this a poor solution in the long term. TCA (amitriptyline) or AED (Gabitril), especially those involving moderate-severe bruxism occurring during REM sleep is a better choice. Take care.
Yes, but. Yes, but habituating. Complex problem. See TMJ-orofacial pain expert for treatment.