Summary
Nowell has gotten some additional time this season, playing in 42 games and playing just under 700 non-garbage-time minutes. He has some craft on offense, with the ability to score at multiple levels. He's not a fully dependent player, as he has a pretty good handle and can create off-the-dribble for himself. He hit a solid 38% from three this past season, and that's while taking a majority from above-the-break. He's a lot more accurate from the corners (50% vs. 34%), so there's some evidence he could be an effective role player in that regard. He's also hit almost half of his midrange attempts. He has some touch around the rim but overall his finishing numbers are bad, as he was in the bottom 10th percentile for his position in shooting percentage at the rim, according to Cleaning the Glass.

Nowell has shown enough that the Wolves will probably keep him around next season, and if they chose to waive him I think he could find a home fairly quickly, especially since he is only 22 years old.

Cap Considerations
Nowell's $1.8 million salary for 2021-2022 is non-guaranteed, and if he is waived he will become an unrestricted free agent and the Timberwolves will have no form of Bird rights on him. If he is waived, teams could claim him off waivers, but would need to fit his salary within cap space or an exception to do so, as his contract doesn't fit within the minimum salary exception as it was a four-year contract.

If Nowell becomes a free agent, other teams will have multiple ways to sign him as even teams without cap space could possibly use either of the Non-Taxpayer MLE, Taxpayer MLE, or possibly even the Room MLE to sign him. However, I don't expect any offers for Nowell to be above the minimum.