last scene with the german babe, what does it stand for?

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It is a cold and aloof scene in the sense that the soldiers experienced a mass occurrence of self-bummer before their mission send them back to the battlefield and (possibly) their demise.

For a moment there, the soldiers took pity on themselves, but rest assured when the song was over, they'd go back to their unfeeling selves to continue killing under the orders of their superiors.

Frankly, I think that scene is sappy and out of place with the whole film. Kubrick was an ardent misanthrope, he shouldn't have tried making us involve our sympathy since the attempt eventually failed anyway.

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Dax feels anger after hearing his men are having fun after 3 of their companions where sentenced to death, but he realizes they are not having fun, they are trying to forget.

The girl was singing a popular German folk song "Der treue Husar" (The Faithful Hussar). It's about a soldier who was parted from his girl and wasn't allowed to return to her until she was deathly ill. Despite all the wars between the two countries, this folk song was well-known and that these soldiers shed tears as they understood the song's meaning.

In reality, French army did have mutiny during WWI as soldiers weren't allowed home furloughs at the height of the conflict. General Robert Nivelle was replaced by Marshall Pétain, who eased the restrictions in order to boost morale. Though there were thousands of courts martial actions resulted in many executions.

The bottom line is that the German girl reminded the loved ones left back home and the folk song summed up the predicament those soldiers were in. Dax decided to let the men to stay a little longer is similar to what Pétain did to restore troop's morale.

"Cowardice in the face of the enemy"
She showed none,
the men were humbled.

Love The Oldies

War..., What is it good for?
Absolutely nothing!
Say it again...

The soldiers were remembering something other than their lives in the trenches, which had consumed them and their friends for so long. It is like the soldier who sees a flower in "All quiet on the Western Front". Nature prevails.

I don't know, but it sure is emotional.