This whole thing is so stupid and so easily resolvable. The writing is on the wall -- Gus, the team, and Sexton know it.
A competent AD, with approval from BOT, would sit Gus down at the end of the season (or now) and say you are not getting another extension. Ever. Your recruiting is tanking and will further tank next year. If you want to part ways now, we will give you _____ (like 1/2) to go quietly (like Tubby). If not, we will sit back and watch you implode. And that will be the end of any chance of you ever coaching Power 5 again. Now go to Waffle House and think it over.