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I mean, this kind of makes sense for both sides?
Collins is way way better than Lyles. They have a 3 man guard rotation of DDR/Fox/Monk. They are going to play Murray a lot at the 3. Huerter was getting benched for them because of defense and he doesn't really make sense on their roster.
Lyles expires after the year and you can just let him ride the pine. You can probably trade Huerter during the season. If not he is easy to trade as an expiring, or maybe you just keep him as a bench shooter? Its not like he will add that many wins.
Seems like the Kings want to push in and this is a way to add talent without paying a big price tag.