On the hiring side, I've found quite a bit of anecdotal success finding really talented junior engineers who have fallen into this trap, where a close read of the resume and cover letters shows a passion that's not covered by the actual keywords on the resume. I'll often stretch our requirements to give interviews to people I have a good gut feeling about - "diamonds in the rough" so to speak. But it takes a lot of time and focus to not simply screen out a resume based on these negative keywords - and given that recruiting teams at a lot of companies have been reduced as well, many won't have the time to do this well, if they ever did to begin with.
As a candidate you can absolutely mitigate this with open-source contributions, if you have time. But it can be hard to find that focus, time, and mentorship/community, especially if the day-job environment is toxic.
The only thing I would add is to always try to shoot for a company where technology is seen as an asset and not just a cost center. Traditionally, that was software companies and places like Wall Street. Now that net is wider, but beware jobs with titles like "Programmer II" or "Programmer/Analyst", indicators of companies where IT is a cost center and you get stuck as a minor cog in a minor wheel.