Summary
Cannady has been somewhat productive in the G-League over the past three seasons, averaging double-figure scoring each year. He's an undersized guard that mostly focuses on scoring, not exactly something that NBA teams are looking for in a back-end rotation player. Cannady has averaged under three assists per game in each of the last three seasons. His 39% three-point shooting on good volume is encouraging though, so those who are optimistic on Cannady could picture a Devonte Graham-like role if he can hit enough shots from outside.

Cannady will already be 26 years old this summer, so he's not exactly a young prospect. He could continue to fight in the G-League for 10-day contracts, but I would be surprised if he makes a roster to start the season.
 
Cap Considerations
Cannady's $1.8 million salary for 2022-2023 is only partially guaranteed, and if he is waived he will become an unrestricted free agent and the Magic 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 three-year contract.

If Cannady 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 Cannady is waived and clears waivers, his value will likely have dropped low enough that he would only have offers for the minimum.