Young, the No. 2 overall pick in the 2020 NFL Draft, has played only 12 games in the past two seasons because of injuries.
The fifth-year contract option would have paid him a fully guaranteed $17.452 million for the 2024 season.
Barring a new long-term deal with the Commanders before then, Young will now become a free agent next March.
Young made the Pro Bowl and was named the NFL Defensive Rookie of the Year in 2020 with 7.5 sacks in 15 starts.
He tore the ACL and patellar tendon in his right knee in Week 10 of 2021, a season-ending injury that also knocked him out for most of 2022.