I think the injury was actually legit (and he actually did fail to tell the training staff about it in a timely manner). Supposedly they did not let him throw his splitter at all until the blister healed. Now they want to see it being executed consistently.
Walker is still better than almost anyone they would trade for at a palatable price, especially if Turnbull will be back in August. The stakes also just aren't very high. At best they could put you and I in the rotation in September and still win the division with three real pitchers. At the absolute worst, they'd blow it and still be comfortably in the playoffs, where they don't need a 5th starter at all.