His personality. The locker room is not the same with him in it. Issues with Tony Romo and Jason Witten. Also consistently criticized Jason Garrett play calling.
Source(s):
http://sports.espn.go.com/nfl/news/story?id=3953647

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In the opinion of Star-Telegram writer Jim Reeves in an article entitled "By losing Terrell Owens, Dallas Cowboys gain a football team" some excerpts:

"This is where Owens sealed his eventual fate with the Cowboys. As long as he was a productive receiver with the occasional overdose of pain pills scare, or minor sideline tantrum, Jerry could and would put up with him. Jones would, in fact, hold onto him as long as possible just to prove his critics, including former head coach Bill Parcells, who never wanted Owens in Dallas, wrong.

But once Owens began cutting up Garrett, complaining about Romo, almost coming to blows with Witten at Valley Ranch, once he became a more serious distraction than attraction, his days here were numbered."

His conclusion was that "The Cowboys just lost 69 receptions, 1,052 receiving yards and 10 touchdowns.

And they’re a far better football team today than they were just 24 hours ago."

Creative Commons by sirmikester
Source(s):
http://www.star-telegram.com/332/story/1239895.html

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They released him because he was a Barry Bonds type person in the locker room. He had feuds with the Tight End, Quarterback, Offensive Coordinator, and other Wide Recievers.
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