Green’s Dictionary of Slang

dug-out n.2

[the image of digging a hole, either in one’s arm or in a pile of food]

1. (US drugs) the lowest class of addict.

[US]D. Maurer ‘Argot of the Und. Narcotic Addict’ Pt 1 in AS XI:2 121/1: dugout. An addict who has reached the bottom; one who is [...] ‘lame, lazy, and crazy’.
[US]Monteleone Criminal Sl. (rev. edn).
[US]J.E. Schmidt Narcotics Lingo and Lore.

2. (US prison) a voracious eater.

[US]D. Clemmer Prison Community (1940) 331/2: dug out, n. A big eater of institution food.
[US]Ragen & Finston World’s Toughest Prison 797: dugout – A heavy eater.
[US]C. Shafer ‘Catheads [...] and Cho-Cho Sticks’ in Abernethy Bounty of Texas (1990) 203: dug-out, n. – a very heavy eater.