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Alternatively, I have the option to join a good chamber as a long-term intern and slog there.
What should I do?
[Side question: Would having long-term internship experience at chambers help me get a job under the disputes team of a law firm?]
Prepare for judiciary, but do intern alongside. While your theoretical knowledge would be useful when/if you enter litigation later, as a fresh associate, you would be expected to make yourself useful by a lot of tasks that you just won't grasp through books. Go intern, pay attention to court procedure, learn how filing and drafting works. If you intern for long, pay attention to strategising aspects of a case - this would also aid your knowledge for DJS.