First of all, I'm really sorry that your son's going through this. I wish that his initial experience with college baseball had gone better. My strong hope is that he lands in a better place; one where he gets the combination of more playing time and a great education (more about that aspect later).
Overall, college baseball is extremely Darwinian, and the pandemic has caused an already competitive environment to become even more so. Faced with tightening budgets and bloated rosters, coaches have been forced to make even more tough choices than they normally have to. In this hyper-competitive environment, an unfortunate set of events like your son's raise the probability that he becomes one of the casualties.
In that program's situation, the elimination of 5 scholarships from the maximum of 11.7 will likely create repercussions for virtually every remaining player, as it will pressure the coaches to reduce a number of their athletic grants-in-aid, as well.
Where does this take me? Directly to the adage that the determination of "fit" needs to be as weighted in the direction of non-baseball considerations as the baseball-related ones. It's not uncommon that uncontrollable factors intervene to throw a player's playing career off track; and, while the portal exists to collect the casualties, the stark fact is that not all portal entrants are going to find a satisfactory landing spot on the other end...if they find one at all.
If a player finds himself in an untenable situation once he's in college, much better to be in a place that's well-suited to his development as a student and individual. After all, something like 90% of DI players aren't going to be able to play beyond college; and only a small fraction of minor league players make it to The Show. You'd better do the best you can on the front end to choose a place where you can receive a great education and have a pleasant college experience off the playing field.