The article clearly indicates the Leafs were not willing to part with Sandin and Liljegren for a rental, which is what Muzzin essentially was.
Muzzin was not a rental. That was the major selling point that Dubas gave for going after a D like him.
Here is what we know for sure:
Insiders on HNIC (including Friedman) said on January 20th (during the time that Dubas was talks with LA and others) that in the search to fix their D problems Sandin and Kapanen were off limits - and said that would mean that the Leafs' first and Liljegren were available.
After the trade for Muzzin, Mike Augello repeated this on January 30th in the
link you posted to:
Reports earlier this month stated the Leafs would not include Sandin or Kapanen in any deal for a defenseman and potential deals for blueline help with Carolina and St. Louis were likely going to have to include someone off the NHL roster.
The Leafs were open to moving Liljegren, their 2019 first rounder or Bracco, but the Kings opted for Durzi over Liljegren (Toronto’s 2017 top pick) in part because scouts are currently down on the Swedish blueliner.
On January 31st
Friedman said in his 31 thoughts:
Los Angeles and Toronto sparred over 2019 first-rounder Rasmus Sandin. The Maple Leafs told anyone who asked they did not want to include him, and held firm. They did, however, remain Muzzin’s most consistent and aggressive pursuer. Montreal and Tampa Bay were in the picture at times, with the Canadiens trying to get him in the aborted Pacioretty deal. I was initially surprised that
Timothy Liljegren wasn’t included. But, after looking deeper, teams are down on him right now. He’s not yet 20 — way too soon to give up — but several scouts were not surprised
the Kings chose OHL Guelph’s Sean Durzi over Liljegren.
On February 9th from the SportsNet
article you posted to Friedman said that Leafs' wanted to add more before the deadline - the forward Ferland being someone they were pursuing - but that in this case they were only looking for a rental. Muzzin was not a rental. If the Leafs are looking to make a trade for someone like Parayko or Ekblad they would be willing to trade assets that they would not be willing to trade for a lesser player and rental. After the Muzzin trade, when the Leafs were just looking for a rental, Liljegren was added to the list of assets the Leafs' were not willing to trade.
You are free to believe that he was part of it before, but Darkknight said he was looking for evidence. The only evidence we have is Friedman saying that LA did not want him. On this forum that has switched to the opposite.
It makes no sense that any team would have preferred Durzi because he was an inferior prospect then with an inferior draft rank while being older, and 1.5 years later, he's still behind Liljegren.
The article does not indicate that Liljegren for Durzi would have been one-for-one. In trades it is rarely the case that a team will have a choice between two prospects without other aspects of the deal changing. These negotiations take place over a long period of time. In the case of the Muzzin trade talks happened over the course of a month. It is likely that if LA agreed to Liljegren that the rest of package would have been less than the additional pieces for a trade with Durzi.
Friedman was completely correct that teams were down on Liljegren at the time. Despite Dubas singing Liljegren's praises about his play in the fall in the weeks before the trade, after the season was over both Dubas and Keefe had said that in the fall Liljegren had played badly and was costing the Marlies games. Mirtle and Wheeler at The Athletic both feel that Liljegren is unlikely to top out above being a third pairing D. Durzi is unlikely to be a full-time NHLer but the trade also included a 1st and Grundstrom. We don't know what a package that included Liljegren would have also included because according to Friedman LA did want not it.
Draft position means little after the draft. Sometimes a late bloomer has a better chance than a early drafted player who peaks earlier. The Kings' would certainly know that. In 2007 they drafted future star Thomas Hickey 4th overall. He never played a game for LA (but was eventually a 3rd pairing D for NYI). 137 spots later they drafted Jake Muzzin.