We have an requirement for servers to have an single certificate which does Client & server authentication
First, keep in mind that this isn't specific to ConfigMgr in any way as ConfigMgr does not issue certs.
Next, this specific requirement is almost always a terrible idea. Certs should be scoped down to as narrow a purpose as possible and this almost always means not having a cert used by both client and server auth.
As for how to create a cert template, there is a lot of documentation on the web including this one: https://learn.microsoft.com/en-us/archive/blogs/askds/designing-and-implementing-a-pki-part-iii-certificate-templates