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Probably under pressure from Apple to provide more content or something, MLS will not participating for the foreseeable future. This of course was met with anger from MLS fans pretty much universally.
MLS says that the tournament isn't professional enough. This basically guarantees that a lower division USL team will win this.
MLS tried to enter it's "MLS Next" teams but the Federation rejected the proposal.
My analysis is that this is just more MLS Don Garber f-ckery. For one, MLS is not happy about the Federation decoupling the National Teams TV rights with MLS. The Federation no longer uses MLS's Soccer United Marketing as their promoter. This hurt MLS badly when negotiating the current media deal. USL which was formerly an MLS vassal state has now just about become a competitor. So MLS playing these teams is seen as only benefitting the USL.
We know that the whole "professionalism" angle was bunk. For years MLS teams have trotted B and C lineups for these early matches. Sometimes even playing kids from Academies. That's not materially any different than MLS Next.
This is just the latest example of how MLS under its current leadership is just simply bad for US Soccer. Not only are we not doing solidarity payments to incentivize and compensate small clubs to develop talent but they are depriving the game in this country of a proper cup competition.