"Role was filled internally"

[Worzel]

Quite possibly the internal candidate was known about all along and the contractor is the backup incase the plan-A internal candidate falls through for whatever reason.

This sounds the most likely reason to me.

I also get the feeling there's a lot of "window shopping" going on, clients seeing what quality of contractor is available. I suppose this reason might also be used if the client was thinking about replacing a contractor at extension time and then decides against it. In fact the more I think about it there's plenty of possible reasons why they could say this. Anyway, I moved on to the next decent application and exactly the same thing happened with that one too - hence the question here!

[VectraMan]

I know for permie positions it is quite normal or even a requirement to search externally for a candidate even if the search is just part of the process and wont affect the outcome.

I'd bet this a case of an HR numptie not understanding the difference between a permanent and contract role and going through the same process. Wouldn't be the first time.

I've never been in a position to do it, but I imagine having to apply and interview for a job with your current employer must be soul destroying.

[lukemg]

Come on people, this is page 1 - just fire and forget, feedback is pointless, reasons are usually made up. Why ? Because yapping to you is a waste of time for an agent and occasionally an upset contractor will be firing questions back, getting upset, asking for another chance, blah blah blah. They dont need the grief so you get a stock answer that you cant dispute.
Having said that....2nd contract I went for, got a knockback and I knew I had been a bit full on at the interview, (used to get nervous in them days). Told the agent to get me back in there, he did, I stayed 6 years and it well set me up ! I don't even bother now, I presume its not happening unless I get a call.

[yasockie]

This is most likely legitimate. I am expected to take the extension, but the client in a rare outburst of a common sense is advertising the roles just in case some of the contractors don't accept the extension. (they were very surprised when they lost 2 contractors mid-year, I guess it got them thinking)

[Wanderer]

In the last few weeks I've had 3 applications where I was well matched that have ended up in the role being filled internally. I know for permie positions it is quite normal or even a requirement to search externally for a candidate even if the search is just part of the process and wont affect the outcome. For contracts however this seems bizarre! Is this the new excuse for the brush-off? Anyone else getting this?

tulip happens. There is no conspiracy. Get over it and move on to the next interview.