Does authorized to work in US mean that the current H1b holders can apply? How about jobs that say that applicant must not require any sponsorship now and in future? Can the current H1b holders can also apply for these jobs using the transfer?

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Answer is no. Sponsorship is not limited to only entering a name in the lottery. Just because you have an H1B or H1B + I140 making the lottery luck irrelevant doesn't mean sponsorship does not apply. If there is anything the company's immigration lawyers have to do for you including transfer paperwork, then you havs to answer yes to requires sponsorship.

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If a job specifically says “must not require” then you cannot apply. If it just asks the question, then you should answer “yes”. It’s a standard question, you may or may not be considered , as most companies ask that

“Can you apply ?” - Yes. Unless the job is directly or indirectly related to the public sector(although there might be exceptions there too) , i would take a shot. At best you’ll be rejected.

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