Insulting how? she knew she was done there when Texas declined contact negotiations to extend her term as head coach. I’d be shocked if she weren’t aware she was on the hot seat before the season began. She may even have known about Schaefer as it appears she didn’t protest or make a big stink.
Honestly, I can't believe Karen (or her agent, if she has one) allowed her contract to get beyond having 2 years remaining at any time. At that point, I would have demanded a 2-3 year extension based on my most recent job performance (4 consecutive Sweet 16's), or started looking elsewhere.
From a negotiating perspective, she lost all leverage continuing to allow her employment years/months to dwindle with no commitment from her boss(es). And, with her last two seasons being her worst (since her initial year at Texas), she did not make a strong case to get an extension. It's unfortunate for her that it turned out that way; but, Chris Del Conte played it smarter IMO.
Maybe Karen was a casualty of the transition in ADs between Plonsky and Chris Del Conte. From his perspective, he played it perfectly (other than not moving a week or two faster for our liking in officially announcing she was not being extended). He basically let her "audition" to keep her job, and she didn't produce at a high enough level