Not trying to be difficult, but how could a player with no MLS status be drafted?
The rule you cite applies to free agents or players out of contract, neither of which would apply to Yangel.
Look at last year:
https://en.wikipedia.org/wiki/2016_MLS_Expansion_Draft#Team-by-team-breakdown
I think everyone agrees it's odd, but loan players were both exposed and protected in last year's draft.