I have a feeling he has decided he wants to be in Texas. They had a deal done before he failed his physical. That means he wanted to stay at home to play and pitch for his old pitching coach.
Texas loses a 2nd round pick if they sign him before July. I wouldn't doubt if he has agreed to a lesser deal in principle and is waiting for that July deadline to sign with Texas unless one of the big boys come knocking with a big offer (which I don't see happening). Also, as of now, Milwaukee is likely on the hook for paying for his surgery and rehab as he was injured while pitching for them. Milwaukee claims he was fine after the season and must have reinjured it so they can try to avoid paying.
IMO, Milwaukee was the second most likely destination for him behind Texas, and if they truly are making this stance about the surgery, they will likely remove themselves from favor with him and for consideration of his services.
Best case scenario for Texas is if they get him after the July deadline and don't have to surrender a pick.