Looks like you are using amp-mustache. I don't think there is a way for you to use custom JavaScript in Mustache.js here, and restrictions from AMP prevent you to create some kind of function that you can call in {{}}. I would suggest processing in the backend before sending. (Also unfortunately, there are no other templates other than mustache available at this point)
There is a workaround on math using amp-bind here: AMP Mustache and Math
So probably after loading the JSON with amp-state, something like
myItems.map(entry => ({
myString: entry.myString.split('').map(c => c == '-' ? ' ' : c).join('')),
})
might work (I have not tested myself but worth a try, check whitelisted functions here: https://www.ampproject.org/es/docs/reference/components/amp-bind#white-listed-functions) but might still be a pain performance-wise (amp-bind has quite a bit overhead)
Edit: this actually looks quite promising, just found out actually amp-list with amp-bind do accept object for [src], as described in the doc (learning something new myself): https://www.ampproject.org/docs/reference/components/amp-bind
(checked amp-list source code and should work)