Apparently, you can still offer scholarships in recruiting when you have none left. Here is how it happened with me during recruiting period 1.

I'm the only Human team in on PG1 and am very high while everyone else is very low. PG1 is holding off on signing because he has a preference to play right away and I told him that I was going to redshirt him.

Because he is taking so long (and I am planning on recruiting and redshirting a PG), I start looking for a Plan B. I throw some attention points at PG2.

Near the end of recruiting period 1 (in the next to last cycle), PG1 signs with me. I have zero scholarships open. During that same cycle, my attention points on PG2 unlock the scholarship offer. On a lark, I offer it to him. I am now "very high" for him and everyone else is "moderate."

If I don't have any open scholarships, why should I be able to offer PG2 one?

When can you cut players?

I think it lets you offer lots of schollies even if you dont have openings. Rescind? EE?

I do not think it lets a player accept a schollie if you dont have an opening.

Yeah exactly, it's not a bug. It's basically just like this guy is holding out hope that you'll lose someone (cut, transfer, EE) and then he can sign with you. Otherwise he'll sign with someone else if their interest gets to High/VH or it's the very last cycle and only a moderate and below as offered a scholly.