Why on earth would I quit my job or take days(?) off just so I can apply for a contract position? This would be strictly for unemployed software engineers, or truly desperate ones that needed to get out of their current job ASAP.
Especially in this environment, it could be weeks or months before the next C2H, especially with so many more engineers being laid off. There could be a ton of people competing for a single job.
Also, negotiated a higher salary when THEY hold the cards because now you need to find a new job? That's insane.
If you're consistently swinging from contract to contract you're a freelancer, and you should be arranging contracts accordingly, not letting headhunters/recruiters control the playbook by dangling full-time employment.
I agree with the grandparent: C2H usually means you're unemployed, or you want out of your current gig badly, or you're aiming slightly higher than you're qualified; if you're qualified for the role and already have a job then they should be willing to take you on from the get-go.