Started a brand new clean save and turned off auto league evolution.
First example I found is not a draftee, but did sign a MiLB contract after being released from another team.
Here is the waivers screen.
Here is his profile page showing he hasn't been above A Ball.
Here is his player history showing he was released.
Here is the player editor showing the "major league contract extension".
Here is the transaction log showing his contract being purchased from the DSL.