That's how almost all professional athletes are treated.
In American professional sports, at least there's a CBA so that players get some input into how they are treated. But they can be traded, cut, or sold as commodities. Hell, in baseball, you can trade a player for "cash considerations"... In other words, you can straight up sell him to another team.
In global soccer, they will put release prices into the terms of the contract... Essentially, pay us X price to dissolve the contract so you can sign them. Players are literally talked about being transferred, bought, and sold.
In professional sports, if you are under contract with a team, you can ask to be traded, but it doesn't give other teams permission to contact you. That's tampering and there are consequences to that (fines/draft picks/etc). I think this Wisconsin situation is similar...I don't think it'll affect NIL (true third-party NIL such as commercial endorsements and collectives) at all. After all, Wisconsin's complaint barely mentions their collective; they are more worried about the contract signed with the school for AD revenue sharing. I think this situation could hasten the professionalization of NCAA sports and possibly lead to some sort of CBA between college athletes and the NCAA (or some other NCAA-like overseeing entity).
However, just like professional athletes, no CBA can place any limits on what an athlete can make utilizing their name, image, and likeness for endorsements. No CBA can limit how much State Farm pays Patrick Mahomes, how much Dr. Pepper pays Quinn Ewers, or how much a group of people pays the Texas Longhorns Tight Ends to make an appearance at a group ticketed event.