Here is a bit of advice from 20 years in IT: Always apply for jobs, even if you are sure you will not be fired. It's like going to the gym every week and keeping your six pack. Don't wait to be fired, be always looking. Do the interviews, get to the final interview and then decide whether to proceed or not.
Eh, this isn’t as cut-and-dry as it seems and requires a bit of tact (not to mention doesn’t answer the question). If you are in a smaller market, word will get around that you are wasting everyone’s time. Also interviewing eats up a lot of time so if this is all you are doing, other responsibilities are probably going to get neglected which will get noticed. Again, as always YMMV.
Obviously you shouldn't be spamming every single job out there. Apply for jobs that are either better or equal your current status. Jobs where if they accept you, you are very likely to proceed.
> Also interviewing eats up a lot of time so if this is all you are doing, other responsibilities are probably going to get neglected which will get noticed.
It actually doesn't if you know what you are doing. It takes 30mins on a Sunday to look for all jobs and email alerts. Pick one or two, input the job description into ChatGPT and generate a cover letter. Edit and submit. For interviews you usually have a 30mins with HR and can discuss salary.
Companies value you if you are already in a job and are looking for other jobs. If you are already out of a job, you will be treated like dirt.