Hallo there!
I had the same situation last year. Because of the covid pandemic. It was very hard for me to accept and understand that I didn't have time to apply for internal funding.
I didn't wait until next year to apply for internal funding and applied for fully funded PhD.
I pulled myself together and decided not to spend another year applying for internal funding next year. And I didn't regret my decision. I had a very interesting dissertation topic.
I wrote the best thesis in my group. And I advise you not to waste your time. If it happened, it had to happen. Don't waste your time, make your decisions!
Good luck!