Cac probably wanted compensation for her box having no walls after those male escorts ruined her.
This really. She better hope he is actually in love with her or she gives up that money to him because she now has a target on her back and the cac has a way out. If he offs her and takes the money, he can make it look like a suicide, have the local police buy into it because he's white (and then some), and have people looking at Diddy sideways because of his rep (because they'll think he did it), or Diddy may actually try something, such as going after her kids or the guy, via his connections or outright some mobster shyt (unlikely because no one around him would let him do obvious shyt like that - part of why I'm skeptical about Cassie too).
That said, the settlement was probably just to make the whole thing go away quickly and be buried in the news cycle. He has connections to other companies and other people and I'm willing to assume many of them were ready if not already dropping him from their shyt. At a certain point, these celebs are more than people, they're walking talking businesses whom a large number of people are tied to.