It doesn't get any better. I'm in the 2nd season of my current franchise, and somebody's preseason cuts included a guy they just picked in the 1st round in the most recent draft.
Other than Demetrius Underwood, a d-lineman who got cut during camp after he had some kind of mental breakdown, I can't even think of another example of that happening in the modern NFL.
Not sure why sports games are so terrible about this. Even a game like The Show, which everybody pretends is so perfect, suffers from the same problem where teams don't seem aware of which young players were prized draft picks.
Pretty basic stuff. Yet literally everybody blows it.