Can an ASM apply for CL positions in other districts/states before being officially promoted?

I was hired as an ASM with the expectation that I’d be ready to compete for an CL position within about 6 months of completing training. I’m now past that point, and my experience as an ASM has honestly been a whirlwind.
I came from a café-only background, so learning to run a high-volume drive-thru environment and consistently hit Peak OTW goals has been one of my biggest challenges. My DM and CL have both told me that I’m very strong administratively, but they’ve had concerns about my in-the-moment coaching and floor leadership because I haven’t been able to consistently produce the Peak results they’re looking for. A few weeks ago, those conversations became serious enough that demotion was mentioned if I couldn’t start showing improvement.
Then yesterday, I got a call asking whether I’d be interested in taking an SM position in another district. It would come with relocation assistance.
Obviously, being considered for SM is exciting, especially after the conversations I’ve been having. But this really isn’t the promotion/location I pictured myself accepting.
The store is in a very small and isolated town, about 1.5 hours away from most of the rest of the district, and from what I understand, it’s a difficult market. It’s also not somewhere I can see myself building a future. Where I currently live was already supposed to be temporary, but at least I’m in a decent-sized city and currently live rent/utility free. Taking this position could mean suddenly spending around $2,000–$2,500/month on rent and utilities for housing I don’t particularly want, in an area I don’t particularly want to live.
If I’m going to relocate and take on those expenses anyway, I’d honestly rather relocate somewhere my fiancé and I could actually see ourselves living long-term. We’ve already discussed moving to another part of Texas or potentially another state altogether.

So my question for current/former ASMs, SMs, or anyone familiar with the internal hiring process:
Can an ASM apply for open SM positions in other districts, cities, or states before officially being promoted/declared ready for CL?

I haven’t officially been told, “You’re now a CL.” I was simply contacted about whether I’d be interested in this particular SM opportunity. Does being considered for this position mean I can start applying to other SM postings through Career Hub, or would I still need my current DM to consider me ready before another district could hire me?
I’m also wondering how much involvement my current DM would have if I applied elsewhere. Would the hiring DM contact my current DM for feedback? Could my current DM essentially tell another DM that I’m not ready, even though I’m currently being asked to consider an SM position?
Part of me is worried that this opportunity is convenient for my current district because it allows them to move an ASM they’ve had development concerns about into another district rather than deciding whether to demote me. I could absolutely be reading too much into that, which is why I’m looking for insight from people who actually understand the process.
I’m not opposed to relocating, and I’m not necessarily turning this opportunity down. I just don’t want to accept the first SM position offered to me out of fear that it might be my only chance if I could instead compete for positions in markets where I’d actually want to build my life.
Has anyone here applied for SM positions outside their district/state while still technically an ASM? How did the process work, and how involved was your current DM?