So true! The way it's presented you would think DCC is like a top tier, most competitive team to make in the country but the actual fact is they get a fairly small (compared to the casting pool for big name dance companies in major cities like NYC or LA) pool of candidates, many of whom are "local" or local adjacent (southern states.) Of course there's girls from all over but the bulk of the people who audition are people who are near Dallas/can easily get to Dallas/would relocate to Dallas. Especially since the regular non-covid TC is like 10 weeks. How many would seriously consider relocating for 10 weeks for a job they might not even get? That eliminates a lot of serious career dancers.
IIRC, Judy even mentioned in episode 1 this year that the pool was bigger than ever. Definitely a result of the 10 week TC being eliminated, people not having to travel and as you said, dancers that generally aim to be at much more prestigious companies applying since the industry is collapsed for the time being. Opens the pool up so so much.