It looks like the "hot fix" is working to prevent AI teams from extending players during the offseason, however ...
AI teams are still blowing their cap space by signing free agents to expensive deals. As I mentioned before, it appears that AI teams fail to recognize the cap space needed for draft picks.
As an example, Baltimore in MFN19 is $12M over the cap after the second round of the draft:
https://mfn19.myfootballnow.com/team/9