The backtracking just didn't make sense for Cleveland unless they want another pick which ain't happening. They can A]. Take the deal and if IT Cnt play, eat the contract and let him walk...you still have crowder, zizic, nets pick. Lebron still probably walks. If they close the deal. They're stuck with kyrie and no future when lebron walks, and probably lose kyrie eventually.
If Cleveland thinks they have one more shot at the finals they may keep kyrie, but if IT is able to play at all this year even if it's at the end of the season, they have to take the deal. IT WOULD help with scoring for the playoffs and they'd have the option to resign him for maybe less money.