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When AI trains and a Player train run on a single track route with crossing loops, a Mexican Standoff can occur when the Player train tries to enter a crossing loop with one track already occupied by an AI train travelling in the opposite direction.
Without "Signal Link" as soon as the AI locomotive, the grey SP, reaches the Trackmark between the two approach signals that protect the entrance to the single track section, the route is set for the AI to proceed to the next Trackmark, with Junction R2 locked in the diverge setting.
The Player locomotive, the yellow UP, cannot enter the other track and a Mexican Standoff results.
With "Signal Link", as soon as the Player locomotive enters the single track section, the signal at the exit of the single track section is set to red. "Signal Link" links a red display on this signal with a red display on the signal before the Trackmark.
The AI locomotive does not reach the Trackmark, Junction R2 is not locked so the Player train can enter the free track of the loop.

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