Yup, this just explains in greater detail what I was saying above. And you're totally correct.
Player roles, and holdouts are in there, even though they were "removed." So even though there is no graphic representing what happened to OP's Mike Williams, the AI logic is still programmed to make Williams behave that way.
What happened here, is Mike Williams was holding out since he was either unhappy playing for a low-ranked team, or he was unhappy with his contract.
Thats is why OP cutting and signing him got him on the field, it gave Mike Williams a new contract. It gave Mike Williams what he wanted.
Its very frustrating that this "feature" was removed, but the after effects are still in the game... leaving you sometimes confused as to why the hell your star player is not on the field.
But as far as this bug goes... or the broken IR system... I have just given up on such things being fixed. They just cant/wont/dont fix it for some reason. Whether they dont know, or there are limitations with memory on the disc or in their programming.... *shrugs* it is what it is.
This exact thing happened in my Lions franchise. I went 7-9 in the 2012 season, and next year Mario Manningham (who I signed as a FA) was never on the field even though he was #1 on my depth chart. He was "holding out" for a trade or new contract... and this "bug" left me wondering why... untill I reasearched it and found out why. So I traded Manningham.
Dont get me wrong! I think the holdout thing is kinda cool... I just wish it was either programmed correctly, or completely removed correctly.
Possibly, if OP's team had a better winning record then he likely would have started playing. Regardless though, Williams was simply holding out for a trade or new contract. It's just that there was no graphic in the game alluding to that.