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Pro
First make sure your work is top notch so there is no argument there. Then if you do need his permission to apply, you can say you want to grow your skills and career and this position seems to be something that can help your future. I was in that same position once and my boss insisted I stay. I actually found the other hiring manager and got to know him and that’s how my move happened. My great work in the other area stood out when I applied to the new manager’s department and there was no arguing then.
There are instances where a boss may try to block someone from moving on because they want to keep them around. But if you feel like you boss doesn't care for you anyway, that's probably not an issue. Just do a good job so your record will look good to the people you'll be applying to. And tell you boss you want to apply for the other position. Make it about the future, and don't criticize your boss or make it sound too much like you're trying to get away from him.
You don’t need his permission to apply for an internal role. You can just apply and let him know this is what you’re doing.
Pro
That’s kind of dumb. You applying for an internal position is like any external candidate applying for the position. It should be treated the same way.
Also, I would have a discussion with your boss and tell him you’d like to apply because this position will better help you reach your career goals. If he doesn’t agree, I would start looking for a new job asap. No one should be able to control what position employees want to apply for. It’s a huge red flag.