If they don’t cut him outright, I’d put him on IR for mental health. It’s clearly what’s plaguing him and how is that any different from a physical ailment? Both prevent you from doing your job.
Put him on IR. Pay him the $ this year (better than having the full $7MM cap hit). See if he can shake it at any point during the season. If not, he sits on IR all year and can compete next year in camp with a rookie. Then, go throw a couple million at a guy who is cut in the next few days and hope for the best.
Only other option might be to keep Bass and get a PS kicker. Call up the PS kicker for three weeks and deactivate Bass. Rinse and repeat throughout the year until you’re comfortable Bass has gotten over the mental.