Seeking advice on contract extension vs. job search after non-renewal notice

I just found out that my contract at my current company won't be renewed. However, they've offered me a 2-month extension under certain conditions. I'm feeling a bit uncertain about whether to accept it or not, and I'm looking for advice on how to approach this situation. Should I negotiate the terms of the extension, or is it better to start looking for new opportunities right away? Any insights from those who have been in a similar position would be greatly appreciated.

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