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Maybe try changing the player's role. If he's a pitcher, make him a DH. If a position player, make him a pitcher. Maybe the AI will release him then.
If that doesn't work, maybe try making a spot for him on the team doing the same change of role to an active roster player you don't care about. So if the DFA guy is a batter, make one of your batters into a pitcher, for example. Maybe the AI will DFA the active roster guy and then be able to move the other guy back onto the team.
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