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is there some documentation somewhere which explains how `:` is used in say a resource.id in a resourcePolicy? Is it a special character like how `.` is used in scoped policies? or is there nothing special about it?

TLDR: no special meaning.

All non-identifier characters ([^0-9A-Za-z_]) in resource/principal IDs are being replaced with an underscore, which makes a string “a:c” equal to “a|c”. This is a reason behind restrictive regex on principal ID.