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Sometimes they have to open it externally in order to meet some sort of HR requirement. I've applied for a lot of jobs that were external listings but it was clear they already hired somebody internally, they were just going through the motions.
Most organizations have a policy that jobs have to be open to outside applicants. It can be a little controversial, as outside candidates often feel they are disadvantaged as an internal candidate would be favored. It's possible you may still be a shoo-in, but the company is just doing it by the book.
I had no idea! What is the policy for though? I can't think of a reason why you shouldn't be able to just promote someone who's already working for you?
Opening it externally is pretty standard for fairness and benchmarking. You may still be a strong internal candidate, but expect a full interview process and use it as a chance to clearly show your impact and readiness for the role.