Summary
Bates-Diop could provide value as a stretch big, but he just hasn't hit enough shots to play that role adequately. He has only hit 31% from three, and will need to bump that up at least a few percentage points to be a legitimate threat from outside. Unless he does that, it's hard to see how he becomes a regular rotational player for a good team. He also shoots under 70% from the free throw line, which is not a great sign for those hoping he could turn into an outside shooter. Bates-Diop gave the Spurs some decent minutes in '21-'22, even starting some games, but those minutes mostly came when the Spurs were short-handed. 

Bates-Diop has decent feel for the game in regards to not turning the ball over and making the right plays, but he's not a playmaker off the bounce. He's also a little undersized to play center at 6'9", and doesn't provide any rim protection, so he can really only play the four. His game is similar to Trey Lyles, but Lyles is a better shooter and has developed his off-the-dribble game slightly more than Bates-Diop has.

Bates-Diop is already 26, so he's no longer a young prospect, but I think the Spurs may keep him around rather than waive him. 
 
Cap Considerations
Bates-Diop's $1.8 million salary for 2022-2023 is non-guaranteed, and if he is waived he will become an unrestricted free agent and the Spurs will have no form of Bird rights on him. If he is waived, any team could claim him off waivers since his contract fits within the minimum salary exception.

If Bates-Diop becomes a free agent, other teams will have multiple ways to sign him as even teams without cap space could use any of the Non-Taxpayer MLE, Taxpayer MLE, Room MLE, or Bi-Annual Exception to sign him. If Bates-Diop is waived and clears waivers, his value will have dropped low enough that he would likely only have offers for the minimum.