I consistently found the opposite - I did alter some past titles, but moving from a management role to a lead/senior IC role opened up opportunities (I ended up not taking them). It also potentially eases transitions between industries.
It will definitely raise a question, so if you go that route, it’s useful to figure out what your explanation is. But if you’re staring at depleted savings, it’s a potential path.
Really depends on the company, in my experience. They should be lateral, but especially larger/older companies, the path from, for instance, analyst->sr analyst->manager is pretty defined, and there’s not often a separate path to a “lead” IC role at the same rate as the manager.
It will definitely raise a question, so if you go that route, it’s useful to figure out what your explanation is. But if you’re staring at depleted savings, it’s a potential path.