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I have had this exact same bug.
First off, for most of the 21 seasons of the league, draft picks were sent to the rookie affiliate. However, for the last several seasons, they started showing up in the designated for assignment list.
So, I would manually move the draft picks to the rookie league.
Then, the game would not progress as it kept insisting that my club had players DFA and the list was empty.
The only way to fix this was to resign from the team. That allowed the game to progress. Rejoining the team as GM only brought the bug back.
In an ironic twist of fate, in the previous season as the New York Knickerbockers owner, we had a man on third base with two outs in extra innings of game seven of THE SERIES. We were unable to score and lost the game. Without me as GM, NY finally won the series, capping off my six years with this team.
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