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The inaugural draft takes ALL players in the league and releases them and runs a draft, not jut the free agents.
To do what you want to do just create a league (but don't select to do an inaugural draft) and then go to the free agents screen and select the tab for "Show All Players". Then click on the circle to the left top of the list to mass-select everyone, right click and choose delete. This will get rid of everyone.
Now go to the league setup screen and choose one of your minor leagues with the drop down menu to the upper right. Click on the function menu down near the bottom and choose to fill the league with fictional players.
Do this for each of your minor leagues in turn. You may also want to do this twice for a league or two to make sure you have enough players for all the leagues, including the major. (let me know if you can't figure out how to do it twice).
After that is done, THEN go to your major league setup page and choose release all players and schedule inaugural draft.
That should do what you want.
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