Tyler Palko was an exclusive rights free agent which meant all the Kansas City Chiefs had to do was offer him a one-year contract and they could secure his rights.
It appears they declined to do that. Palko was not tendered which means he's a free agent and available to sign anywhere.
I think it's a pretty good guess that Palko won't be coming back to the Chiefs. If they wanted to keep him, they would have offered him a tender. That they didn't tells us they're moving on.
Probably the best for both sides to move on.