Silly me.
Rookie mistake.
Note to self, must always try to find and read MLS fine-print.
To explain, that assumption was based primarily on a MLS article by MLS Staff?
'During the Re-Entry Draft, MLS clubs can select players,
who are at least 22 years old,
and have a minimum of one year of MLS service,
who are out of contract,
and did not receive a Bona Fide Offer,
or whose contract options were not exercised by their clubs'.