Correct, this year, cutting him costs more than keeping him.
Would note that they did a bit of a restructure earlier this season to clear some cap space this year anyway. They took $1M of his salary this year and converted into a 2023 roster bonus, and they took $250K of his current year salary and turned it into incentives.
Basically, he took a $1.25M pay cut this year that he could earn back with good performance.
Realistically though, I don't see any scenario where he's back next year. They clear $7.3M in cap space by moving off of him, and only $2M in dead money. He'd have to take like a gigantic paycut to stay, perhaps down to close to the league minimum. Also possible they just think the injuries have taken a toll and they want to go younger (namely, Kolar), which is what I suspect they will do.