I won't repeat the points raised in @henning's excellent answer, but I will add one more point. Whereas the lit review section of a journal article must be very short and squarely focused on the topic of the article, a dissertation lit review chapter has the space to explore much further. A doctoral student could do the minimum required, which is to demonstrate knowledge of the bodies of research related to the dissertation topic, but I recommend to take the opportunity to write a lit review chapter that is sufficiently extensive and self-contained to be published as a standalone lit review journal article after completion of the dissertation.
The main difference is that the student should be conscious not just of their own dissertation topic, but of the problems that practitioners have faced and that scholars have tried to tackle in conducting research in that area. The chapter should be rhetorically framed such as to prove that the topic of the dissertation is a question that is important and yet insufficiently researched, hence the rest of the dissertation will meet the need that the lit review chapter has demonstrated.
However, to be publishable as a standalone lit review journal article, the dissertation lit review chapter cannot depend on the rest of the dissertation to complete it. It should identify a wide range of under-researched challenges and even present a broader research agenda with a series of suggested directions for future research (of which the specific dissertation topic is just one), with evidence of the importance of each direction.
This might sound like a lot of work, but, in fact, a publishable dissertation lit review chapter is not that much more work than a non-publishable one, since both require considerable effort anyways. I think it's worth the little bit of extra work in framing the chapter to make sure that it could be published on its own afterwards as an extra article from the dissertation.