var foo: (T | None) | None = None
Which None do you mean here?
This is just basic logic: (X or Y) or Y <=> X or Y
Untagged unions cannot model that. Contrast it with tagged unions:
var foo: Option<Option<T>> = Some(None)
var bar: Option<Option<T>> = None
Now you can reason about where the None means.
Surely, if you want to distinguish between 3 states you need more data, hence my recommendation of Option<T?>
What you say about `Option<Player?>` is a good point though. If we want to distinguish between the different results, we need an explicit Option type. But now we've got Option _and_ we've got nullable types. Which should we use? They're both doing the same thing (i.e. marking where a type may be present but might not be), so why do we need both?
In practice, my impression that nullable types are really good for integrating with languages that already have unchecked nulls in then, either for historical reasons (like Java) or because they're dynamic languages (like Python or Javascript). It's a way of acknowledging the null value in the type system without demanding that all the code that been interacting with nulls be rewritten.
However, if you were going to write your own language from scratch, it's difficult to see why you would allow nullables to exist when the Option type does pretty much everything that nullables can, but with more clarity for cases of "nested nullability". You can also still add syntax sugar for it (Rust is going down this route, for example), but you don't have to special case nullability to the same extent.
Also, the Map::get method that can return null is the problem here (even though your example is great and thanks for that, I didn’t think of it), something like ‘Option<Player?>’ should allow to differentiate between those cases.
But I do remember reading that a bottom type does make typing rules harder (e.g. scala 3’s explicit nulls feature which is basically “T is non-nullable, write it as T | Null” is not sound)