I took over an abandoned team. Draft is next week. 5M for college, 0 for high school. Very few scouted prospects in the draft pool.. For example, only 6 SS showing ratings with the lowest ranked projected at a 33 overall rating. Am I better off ranking guys who could be serviceable (ex: 50 rating and above) passing on the really low rated guys and taking my chances later in the draft with the un-scouted prospects who will sign for slot to fill out the rookie roster?

Personally, I would bump up all of the “Probably won’t sign” guys to get extra picks next year.

No point even ranking guys who could be serviceable. That low scouting budget is only affecting how many prospects you see; the projected ratings are essentially useless. They're all shots in the dark.

I'm not an automatic "punt the draft" guy, I've almost never done it. But it's the best you can do with scouting that low.

Move the "Probably won't sign" guys up so you get the Type D comp picks next season (first three rounds only). And if you need to keep your minor league teams stocked with able bodies, set your draft settings to try to get enough position players. All that "draft prep" should really take only about five or ten minutes.

Bonus question. Will the un-scouted talent be so bad I would be better off saving my money and signing tryout guys?

NOPE. Tryout guys are just warm bodies. Occasionally one of them could turn into a DiTR, that's about it. And guys projected for an Overall rating lower than 40, same thing. But Unscouted players, you could end up with one of those very rare late round freaks who mysteriously goes unseen.

I used to scout 20M High School in one world, which only showed me about 240 prospects. About 200 of them would project to never get out of the minors, they'd be wasted draft picks after the sixth round or so. So I moved all those players to the end of the draft, behind the unscouted ones. Started drafting the lottery tickets early.