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I don't know if such a license is practical or desirable in general, but it would mean that a project under such a license can benefit from derivative works.
Looking at e.g. the non-commercial license the concern would be that contributors to such a project would be contributing code under that license. While the original copyright holder could normally continue to use their project commercially, the contributors would need to explicitly sign an agreement (such as https://github.com/indieopensource/tiny-cla/releases/tag/v1.0.0) that allows for their contribution to be used under any terms the original copyright holder wants (including commercial), otherwise the original creators can't use it commercially as they are no longer the sole copyright holders.
This is a common thing that open-source projects deal with, but it doesn't handle derivatives. If someone modifies a non-commercial project and distributes the derivative source code, the original copyright holder can't use those modifications in their project.
A license that would allow derivative works to be relicensed under any terms by the original copyright holder would mean that there's no need for contributors to sign an agreement, and that modifications in derivative works can be used in the original project. (unclear what that means if someone makes a derivative of a derivative)
Whether those derivative works must distribute their modifications is a separate concern (and even if this was specified in a license, it's unclear if "software" means source-code or executable, i.e. would they need to share the source code if they only distribute the compiled application)