Just assume that he's been offered the chance and is thinking about it. "Doing right by him" also involves not doing everything in the media. If the Blazers made a huge public deal about it and he ended up declining, it would look bad for him, so a respectful FO would not expose him to that possibility of backlash.
Correct. The only agreement with the player is the cash the team will pay them. That doesn't change with a release and stretch - it only changes the cap hit. Dame will hit waivers like every NBA player waived from a roster. He will clear waivers. Then he will be free to sign with a new team.
I was one of the few that was adamant we drop Lillard before this decline happened. I’ve seen enough examples of stars having a precipitous decline when they hit their mid 30’s. players who piggy back teams and regularly play 40 minutes a night especially.