I remembered hearing about this issue a while ago but the changelog for the recent updates made it sound like this should be fixed. I'm still having this problem all the time. There are legitimately always 5 star stud prospects in the free agent pool and it bugs me that the teams are releasing these guys all the time. I could easily sign them all but I've been restraining myself in the interest of fairness. The only thing I can think is that maybe it's something to do with not having a minor league and only having a 25 man reserve roster...that maybe the teams are just always releasing guys because the roster is full. But they sure pick strange guys to release when there's plenty of 1 star overall guys on their reserve roster.
The guy in this picture was a #1 overall pick and was promptly released. It isn't even the most extreme example. I looked at a guy's history the other day and found his team had released and re-signed him TWELVE different times over the course of just one single offseason.