Here's an explanation of how the Section 174 change contributed to SWE layoffs during 2023-2025: https://news.ycombinator.com/item?id=44226571

It's been reversed now, but the inertia is still being felt. The backlog of highly qualified engineers ares still competing for positions, and other factors such as the interest rate and the effect of AI on positions for younger engineers are still in effect.