According to today's Athletic piece the Phillies likely prefer VV, and probably Hale as well, to taking both Kintzler and Watson. Part of that is $, but also depth/length. Semantically, it's like having a tandem starter or 6th starter rather than a relief pitcher per se.
Supposedly they just aren't that impressed with Watson.I think the emergence of Alvarado as a late innings options (be it closer or lefty set-up) changed their thinking (and the math, because you're not gonna pay Watson $3 million to pitch the 6th if he's only a slightly upgrade over younger cheaper players). Watson won't be traded, if he exercises his opt-out he will either take a pay cut or have to sign another minor league deal. The Phillies won't guarantee his contract if they don't want him and he won't be on waivers.
The opt-outs have probably all already been exercised, it just takes 48 hours to find out what happens (they make the team, they leave, or they make a new deal with a later opt-out date. Or none at all).