Are you sure you understand how this works? Because teams can essentially cancel games for whatever reason they want, provided there's any level of covid positives in their program.
There have been a number of cancellations this season despite not having enough cases to hit the threshold. Including OSU vs Illinois last week; OSU could have played that game (and even admitted it) but chose not to in an attempt to slow/stop the spread so they could play more games in the future. It was a calculated risk on OSUs part that seems like will payoff...it sucks for Illinois and isn't fair to them, but it is what it is.
It appears to me that Michigan is in a similar position to OSU last week. I don't believe they've hit the threshold requiring cancellation, but still cancelled their game this week. If they wanted to play, they could. We'll see how their cases trend over the next week but unless it spreads like wildfire in a particular position group(s), they *should* have the ability to play. The question is, will they? It will be their decision.
Personally, I don't buy into the conspiracy. If it came out that Michigan ducked "The Game" over a couple irrelevant cases, they'd get absolutely destroyed in recruiting for it. And it would come out...lets be honest, at least half their current staff won't be at Michigan next season. Their incredible trend of losing players to the transfer portal will certainly continue as well. So, there will be lots of people no longer with the program that will have nothing to lose by sharing what happened. I can't imagine Michigan would be willing to risk that just to avoid another loss in a lost season for the program. It's not like they're saving themselves for anything else this season.
Also, I'm not a big Herbie fan but there's dumber shit said on that network on a daily basis.