"talented" in that context usually means "has the ability of an experienced developer at the salary of a more junior developer."
If you accept that talented software engineers are the people who are simply good at software development then there are plenty - but they're often older, more experienced, and consequently paid more.
Actually, a shortage means that there is an external force that prevents the price from rising, such as government intervention[1]. If salaries have skyrocketed in the last five years, that is a sure sign that there isn't a shortage; although perhaps a shrinking pool of those who can afford the available supply.
As higher and higher salary offers are made, fewer and fewer companies can justify the costs. As fewer companies can afford to hire developers, fewer developers are needed. Thus, in a functioning market where prices are rising, the number of businesses in the running to hire developers can never exceed the number of developers available. As soon as there is another business wanting to hire a developer, the price will rise until someone stops wanting a developer because it has become unaffordable.
Yes...? All of this has happened. Twitter has become remote friendly. My employer is 100% no remote but continues to make exceptions and we have 6 or so remote employees now.
Salaries have skyrocket in the last five years. So I'd say...yes, there is a shortage of talented developers.