Is it true that a bad resume is worse than a fresh graduate? Or in other words, being constantly underemployed will disadvantage me. How true is that statement?

Hi, while there are some elements of truth in that statement - some hiring managers may be questioning the reason of the underemployment, if you can deliver good explanations and showcase how you can add value based on your experiences and other efforts in upgrading yourself, you can significantly improve your chances.

I do know for a fact that many hiring managers also look at a candidate's attitude and culture fit when they choose who to hire, not just skill sets.