From the tutorials I found that there are two ways to connect AEM and Target.
1. Using DTM (via adding target as tool)
2. Via cloud configuration in AEM miscadmin and attaching it on the page.
Question-1 What is the difference between the two and when to use which option ?
With option 2 I am able to see the results and my activities created in AEM are getting synced to Target.
However, when I create any activity in Target and access my page in AEM, I don't see personalisation on the page. What might be missing ? What are the ways to debug it. I am already using Adobe Debugger Chrome Extn. But not getting clue.
Leveraging a tag manager allows you to deploy multiple tools through it. Cloud config is a legacy approach and is not recommended.
Please elaborate, I understand from the question that the activity is created using Adobe Target interface (VEC). Are you testing for changes on the public page or are you testing this within AEM? Within AEM you will not see any change on the page.
For question 1, so Cloud Config is only required to add DTM to the page. Rest all configurations should be handled via DTM tools. Is that right?
For question 2, Yes I created activities using VEC and I am checking it on my local AEM author environment (using wcmmode=disabled) to view it as published. But not able to see the activity result even when 100% of traffic is routed to Experience B.