Per Fightful
Bray Wyatt was released by WWE in what he was told was a "budget cut" on July 31.
Fightful was told that Johnny Ace made the call, and also sent a notification out to shocked WWE talent moments before the news broke online that Wyatt had been released.
The notion of a budget cut immediately surprised those within WWE, as Wyatt is known as being a great merch seller whenever he's actually active. One source indicated that Wyatt was a money maker for the company when that's the case.
In the hour following the release, we're told that Wyatt's name was actually brought up during another recent round of cuts. There have been multiple wrestlers that were discussed, but ended up being held on to. We've seen Observer's report that Wyatt was slated for a return in August, and we can confirm tentative creative plans were in place for him.
Fightful has been told that the creative team had been relayed that Wyatt was getting protective of his character after what were seen as poor creative decisions and ideas thrown his way, though many members of the team didn't speak to Wyatt directly and weren't sure if it was hearsay.
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So nah, WWE didn't do Bray a solid by releasing him for his mental health/or a request. Or whatever the hell is going around to make people feel better and justify it lol