Hi @Manu_Mathew_
Design dialog in static templates are replaced by component policies in editable templates.
Pages created from editable templates do not offer a Design mode in the page editor.
The policies tree of an editable template has the same hierarchy as the design mode configuration of a static template under:
/etc/designs/<my-site>/jcr:content/<component-name>
The design mode configuration of a static template was defined per page component.
Please refer the below link for more info regarding how to manage the policies:
https://experienceleague.adobe.com/docs/experience-manager-64/developing/platform/templates/page-tem...
http://www.sgaemsolutions.com/2019/10/component-and-template-level-design.html
Thanks!