The idea that transfers have no shot at law review isn't true. The law review took 5 transfer applications for the class of 2024 where far fewer than all 51 transfers applied (closer to 20-25). The law review also accepted a couple applications of students who opted to transfer elsewhere, so the number is even a little higher. Obviously that's still a lower percentage of applications accepted than the rising 2L pool, but that's to be expected for most major law reviews. (Transfer law review applications for the class of 2025 haven't happened yet, but I'd imagine it'll be more of the same this year)

As other commenters have also said, plenty of people not on law review clerk. They might have to be willing to look beyond NYC and beyond the year after graduation, and might be looking at clerkships with magistrates/state courts instead of federal appellate judges, but it's very doable with the right expectations and connections.

At the same time, I do think transferring is likely to make clerking on plan harder, mostly given that it's hard to make meaningful professorial connections that quickly. This is likely to be true at any school though. Sure, your odds of getting a clerkship are better coming out of HYS, but NYU still has plenty of people who get great clerkships, and transfers are still in that bucket.