Corrosion will go as far as any and all of the metal left inside the concrete can touch both air (oxygen) and the metal, and goes faster when ANY water or humidity near the metal can't evaporate because it is trapped under the concrete.
Sure, it will be a little bit slower deep inside the concrete because air flow is limited down there, but it will never stop corroding. Completely covered rebar will NOT corrode.
Cut off rebar (by definition!) will be left with the ends exposed, and is likely to be further exposed by the concrete spalling from incidental heating at the concrete surface.
To the original question. This is a bad idea, but not because of the thermal expansion of the rebar. The distance between "cold" rebar and the very hot tip is very, very short once the rebar goes into the concrete and doesn't get hit with the flames. thus, there very very little linear thermal expansion. Right at the surface, the rebar is constrained against movement INTO the concrete, and has no restraint against expanding into the air outside the concrete, so it will tend to expand away from the surface, not axially nor radially into the concrete. Spalling is a danger.