Here’s a scenario that I see and am unsure if it’s possible.
Watson gets the 4-6 game suspension this season, and then continues to be stubborn and refuses to play when able to return.
This allows the Texans to stop his contract from tolling for the year, gives time for the court proceedings to play out before the 22 draft.
Texans can then invalidate his new contract for conduct detrimental, allowing them to trade him with his 5th year option to anyone they choose. They will also likely have a chance to chase Watson for the signing bonus they paid cash. This is likely more important to Cal and Janice than the cap ramifications.
This could return the most value to the Texans as the team he moves to can structure his contract how they want, he’ll be a day one starter having moved beyond legal proceedings.