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I don't think there's any harm in applying if they aren't getting back to you. And if they do get back to you, well, there you go. But at least you're doing everything you can to find work.
Yea the latest message sounded quite positive and promising. But not sure if it's real. I haven't been in the job market for a while so I am not sure if that's how things are done now. But when I hear "will give you an update", I am willing to wait and I expect an update. Pretty straight forward communication.