From 2022 this all changed as markets became more FCF sensitive, ZIRP went away, and AI started automating a lot of the dev practice. I know a sadly high amount of people (though in my circles not too many) who built up lifestyles predicated on high software salaries and a static set of requirements. A lot of these folks are angry and scared and desperately trying to navigate this changing world.
That puts them in a precarious place since the organization that downsizes would be looking at them first ... and that they haven't been able to attain any mastery of the newer technologies that are coming into play in the system.
For many of them, they're finding themselves leaning on AI to make up for the lack of learning new things (and without learning those new things). They're also realizing that any candidate who is more skilled than they are would be a stronger candidate (and that their job is increasingly becoming entering prompts into an LLM that is easily replaced).
Why they got to that spot and stopped? That's an open question. Some might have gotten comfortable at that spot. Others forcefully reject the idea that continuous learning outside of the 9-5 is needed (spend 40 hours a year learning a new technology). Others may lack the problem solving capabilities to go beyond that spot. I know I've seen all three of those. There are probably other reasons too.