Interviewed for weeks at this company, only for them to tell me “You interviewed very well, however we are moving on with an internal hire”
Is that even true or just a polite way of rejection?

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This happens a lot. If you want to keep in contact or at least not burn any bridges, which I usually recommend, send a quick, note. Don't expect to hear anything back. If you want to send a message keep it simple and short.
Something like this...
"I appreciate you letting me know. While I’m disappointed, I understand the value of promoting from within. I enjoyed meeting the team and learning about [Company Name]. If a similar role opens up in the future, I’d love to be considered.

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That's perfect....

This happens a lot actually. Many companies hire from with it. People within the company sometimes gets first dibs when it comes to some of the roles. It’s just bad timing on this one. Keep tabs on them and move on in the meantime.

Most time it can be true

I mean, it’s both. A polite rejection and probably true.

and does the answer makes any difference?

You cannot control it anyway.
It's not like the internal person got it just because they were an internal hire. If that were the case, they wouldn't be looking outside to begin with. I doubt this internal person was unaware of the opportunity until the last moment and somehow interfered with your chances. Being internal gives you some advantage, but it is neither the only nor the necessary condition for beating other candidates. More likely, they were looking to see if they could find someone better, but something tipped the scales in favor of the internal candidate.
That is not very different from a situation where another candidate wins and that candidate is not internal at all. In either case, there is some "something" to work on, but no one ever explain to you their decisions, right? and it's completely impossible to work on something when you don't know exactly what it is.

And even if you do know it is also not like you can work on something. Let's say I know that the last time I was rejected because I have more experience in an R&D lab than in a manufacturing environment. How exactly am I supposed to work on that?

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