My advice . . . volunteering to do a show for no/little pay seems odd?
Do waiters wait tables for free?
Do bankers pick up hours for free?
Once you take a job for free (or very low pay) - be careful it brands you. You want to use them to make connections, great - but what you did was make connections with people who don't pay stage managers with a theater company that once you put on your resume says, oh, this SM is at this level in NYC - she'll work for 100.00 a week, why pay her 1,000.00
The showcases are sort of an endless trap here in NYC, and should be banished - but they do give a chance for actors to continue to ply their trade. And SM's as well, but given you have LORT experience, do you think volunteer for a no-budget/low-budget show is going to help take you to the next level - or do you need to work on your skills of how to work in a frustrating work environment? ;-)
And, now that you are attached to a showcase, are you going to be able to drop everything if a paid gig is offered to you, or will you want to honor your commitment to the production? (Which leads to the questions what is you level of commitment to a low/no paying volunteer stage management opportunity?)
Because the market in NYC is flooded, young SMs are desperate to get a gig, any gig - and you have to be honest with yourself about what the benefits versus the liabilities of any project. Is it better the PSM for no pay, or be a PA for some pay? This show may have legs, so let's get in on the ground floor? I have a friend who is directing and this is a personal favor on the four weeks between gigs. Do I need more ASM credits, or should I push forward on SM. What do I want to get branded as.
As someone who just rant thru 20 vetted resumes and interviews, you want to be able to stand out . . . when ever I am considering a career move (not just a job, but the next step in my career - hell, sometimes even a job), I open my resume, add the gig and look at the whole picture - does this help me, does this hurt me - look at it from a business proposition. How will this help me in the future.
Also, you need to be careful in taking lower paying jobs as it might screw with your unemployment.
Yes, there such a thing as a wrong show or wrong theater company or a wrong gig - but what is wrong for me, may not be wrong for you. Ultimately, you are always going to know your situation best - so you have to trust your gut.