It really isn't that complicated.
Anyone who has at least 3 years of professional experience, doesn't have a NMC and doesn't meet the injury exemptions are automatically eligible to be selected by Seattle.
BUT
The league wants to ensure that their expansions teams, the ones that just paid half a billion dollars and more, have actual NHL calibre talent to select from. Hence, the minimum games requirements:
* One defenseman who is a) under contract in 2021-22 and b) played in at least 40 NHL games the prior season or played in at least 70 NHL games in the prior two seasons.
* Two forwards who are a) under contract in 2021-22 and b) played at least 40 NHL games the prior season or played in at least 70 NHL games in the prior two seasons.
* One goalie who is under contract in 2021-22 or will be a restricted free agent at the end of his current contract immediately prior to 2021-22. If a team elects to make a restricted free agent goalie available to meet this requirement, that goalie must have received his qualifying offer prior to the submission of the team's protected list.
The whole idea is that teams are forced to expose players
under contract that were actually a part of their regular roster instead of simply having a bunch of dregs for the Kraken to draw from. Basically, if a defensemen or forward played roughly half of the possible games for you over the last season or two, then they must be, generally speaking, NHL calibre.
So regarding Phillips, he's eligible but because the Flames are scaredy cats afraid of giving their prospects a chance, he doesn't meet the minimum games requirements. In fact, they only have one forward that meets the requirements in Lucic (exposing Giordano satisfies the defense part). If Treliving doesn't do his job soon and get another forward that at minimum played 40 games last season or 70 games over the last two years under contract, then one of the protected seven will have to be exposed.
I'm assuming the reason why Ritchie or Ryan haven't been re-signed yet is because they're trying to leverage the situation into better deals for themselves or Treliving has some trades lined up.