I have had this happen to me more than once. When it did it was once due to cap issues you do not seem to have, the other was most of my players were tied up in multi year deals so I didn't have alot of roster space available to add players for a 53 man roster. (Even though I was just keeping them incase I didn't get any good players, the draft that season only had 1 player I wanted or wanted at the position I would have had to draft them at.) The players it told me to cut were players that I would make money back up dropping. (Higher pay vs penalty) I just ignored them and took the hit, dropping from 95 to 92. No big deal.