Interviewing for a job where I know there is an internal candidate--any suggestions?

Anonymous
OP update. I had the interview. It went great, I think. I had prepared a LOT and it was very helpful--e.g. they asked me based on the job description what specific points interested me, and I remembered all of the bullet points in the description so I had a good answer.

The panel didn't seem disinterested or dismissive. They'd read my resume and highlighted some things. They took notes. They told me there were a number of candidates and they'd get back to me in three weeks.

So now I'm curious what's up. If this was a fake interview, they put a lot of effort into it.
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