He's not a free agent until the LV league is done, he was signed to a summer league contract, but not a summer contract (which would give the Sixers rights through training camp).
I think the Sixers note the improvement, but the fact they signed Long suggests either they don't see enough in Wood, or just as likely, Wood wants to sign elsewhere because of the logjam of big men.
Holmes is still the better prospect, he's working on improving his rebounding, he's a natural shot blocker, and has shown in real games that he can attack the basket. Coming off the bench, that's more important than being a scorer.