The reduction - seems counterintuitive to discourage new coaches from progressing, but I can at least see the reasoning behind it, that the players were recruited for another coach.
The inability to re-offer starts or minutes - just negligent not to fix it. If the engine can factor in a New Coach Reduction it can reset those offers too. It honestly can't be that hard. And especially when there is no indication that you'd be handicapped that way. Willing to bet more than a few coaches who potentially would have stuck around threw their hands up and left after having their first D2 recruiting efforts get sabotaged by the game.