The timeline matters here, as well.
If you go back to March when O Gun was signed, we then had only Oliver Jones and Carter on the roster.
Beane has since stated that once they learned about the suspension, the FA DT market had essentially dried up for what they were looking for. This lead them to the renegotiation of the deal.
There was also no way to forecast that they’ve be drafting two defensive tackles a month later. So although Larry might have been in the initial re-tooling plans, I think the suspension moved him to more of an insurance role.
Now that we’ve restocked in the draft with what appears to be reliable youth, they can shelf O gun for weeks and have him available as a “pull here in case of emergency” whether that be injuries or performance.
The 3.5 guarenteed is a sunken cost, and I think Beane may have seen it as a bit of insurance heading into the draft and offseason to make sure they aren’t bone dry come January relying on the likes of Eli Ankou and Zion Logue when it matters most.