There are big differences between a short story and a novel. Novels are expected to cover more ground and tackle bigger questions. You're never wasting time by fleshing out a story, in fact that's a large part of the job.
I don't know any case where someone sent out a story hoping to sell a novel. You can certainly send out pitches and queries, but in the end it is the novel that you're trying to sell. No other format matters.
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