Definitely option 2. I was in favor of signing both Shaq and Phillips, but I'm now leaning toward Shaq only.
Shaq has outperformed Trent, who is over-paid for his production. Also, his clueless play against the Titans, collapsing in on a fake, was not the first time he's done that. Go with Shaq and Daryl Johnson at LDE, and Jerry/Yannick at RDE. Hughes played 64% of snaps this year, and it's most likely time for him to throttle down to 50%.
As for Phillips, 2020 is the year of the horse, Ed Oliver. Get him over 60% of the snaps, then both add a 3-tech vet and draft someone.