The AMS 2.0 Dispatcher standard/AEM as Cloud Dispatcher configurations enable modularized dispatcher configurations and also simplify and remove the duplicate configuration.
As shown in the below diagram, one of the major changes is using symlinks to avoid duplication of farm files and host configurations. In earlier versions, the farm and vhost files are duplicated under available and enabled folders, this leads to duplication and overhead for management — the changes should be applied in two different files.
In AMS 2.0/AEM as Cloud Service dispatcher configurations, the files are managed through symlinks, the actual file is inside the available folder, and symlink created to the file under the enabled folder. The symlinks are going to be relative to the available folder — ../available_vhosts/test.vhost
e.g
~/dispatcher/src/conf.d/enabled_vhosts/test.vhost — symlink
~/dispatcher/src/conf.dispatcher.d/enabled_farms/test_farm.any — symlink

The challenge here is enabling the symlink, we had challenges in managing the symlinks as developer use the different OS for their day to day work e.g Windows, Linux, or Mac.
In this tutorial let us see the different approaches to enable the symlinks.
Linux/Mac:
The ln command can be used in Linux/Mac to create the symlinks -The ln command is a standard Unix command utility used to create a hard link or a symbolic link to an existing file or directory.
Execute the below commands

Windows:
In Windows, multiple options can be used to create the symlinks
WSL2 — Windows Sub Syetsm For Linux
Windows Subsystem for Linux is a compatibility layer for running Linux binary executables natively on Windows 10 and Windows Server 2019. In May 2019, WSL 2 was announced, introducing important changes such as a real Linux kernel, through a subset of Hyper-V features.
If the WSL feature is already enabled you should be able to execute the Linux commands in Windows System
Refer to the below video for details on enabling WSL2 in Windows
Execute the below commands

The 0 KB file is created now with the symlink details.
Remove symlink(execute from enabled_vhosts)

Git Bash
Git Bash allows us to enable the symlink, execute the below commands through an administrator or elevated access

mklink
Windows utility creates a directory or files symbolic or hard link in Windows
Execute the below commands(execute through an administrator or elevated access)
mklink 001_www_example_com.vhost "../available_vhosts/001_www_example_com.vhost"
dir
del 001_www_example_com.vhost

The mklink utility was working without any issues for me, able to deploy the dispatcher configurations to AMS server with the symlink created through mklink in windows machine(easy to use the utility in windows and not require any additional configurations — my recommended option for windows)
The git commit adds the symlinks also to the remote repository so whenever the configurations are checked out for the deployment the symlinks also restored.
After git checkout, the symlinks created and committed under Linux appear as plain text files that contain the link text under Windows.

or
git clone -c core.symlinks=true https://git.xxx.com/xxx/xxx/
Now the symlinks will be recreated after checkout and you will see the files with 0KB.