EDIT:
The question essentially depends on at least some code for arbitrary $\alpha<\eta$ stabilizing at times $<\omega^L_1$. Unfortunately, since I didn't mention it right at the beginning of the question, this is why it might have seemed confusing.
But my reason for edit is mostly related to the answer and the discussion related to it (and this might be too long for a comment). Given the variable $v$ (in the question), each time when its increase is triggered we can flash the output (for example, in the outline I linked above, this would occur within the "if" condition). In the answer given to the question, what I have called variable $v$, more or less corresponds to the position of "red mark". This flashing is mentioned in the answer (see the last paragraph of the answer) as an example of a program whose output doesn't stabilize at any point $<\omega^L_1$.
There is still something unsettling for me regarding this. Maybe I am imagining things incorrectly (since I haven't thought about it in precise way yet) but the thing that is unsettling for me is the rate/frequency at which the variable $v$ will increase (or alternatively, the position of "red mark").
Because, at a basic thought, it seems that the frequency of this change must be fairly high. Because if $v$ stays constant for too long then a program with empty input (and with access to parameters $<p$ where $p<\omega^L_1$) would be able to halt beyond the supremum of the allowed halting positions. $p$ is a fixed value in the previous sentence. Obviously this isn't allowed, so $v$ can't be staying constant (for long stretches) below $\omega^L_1$.
But obviously above $\omega^L_1$ this is what happens (so it actually stays constant forever). Perhaps there is an easy explanation for this. I will think over it carefully (and possibly post it as a separate question) after thinking about it more closely (i.e. whether it can be made precise or not) and if it seems like a genuine question. In-case there is an easy explanation to this, it would be interesting to read.