I think the trepidation around LVE continues to be medical, the option is only guaranteed for injury, so there is no real downside unless he gets injured again and milks it for a free 9 million, which is a risk if he's quietly concerned about his neck and just wants to cash in once before cashing out and retiring.
From that perspective I think rejecting the option and signing him to an extension that is potentially cheap due to the cap shrinking and his lackluster 2020 would make a lot of sense, especially if it's structured to mitigate a possible early retirement. I don't truly believe that they want to get rid of him outright.
As an aside, hopefully this teaches them a fucking lesson to stop sticking their head in the sand when taking guys in the 1st who have medical red flags.