Word Not Saving and Opening Templates from Same Location

You can't set an online location as a templates folder, so it will have to be on a drive that is accessible to your system without the internet. Most folders on your system can be used, but Microsoft does not publish a list of criteria to follow. What I use is a NAS drive setup (this in answer to your original concern about maintaining your files if you switch computers) with all documents and templates stored on it instead of my local C: drive. I can use the same templates from all 6 of my office computers.

As I mentioned in my previous reply, the folder where you want to save cannot serve as a Templates folder. So Word will not automatically save the file there, even though you set the option to point here. Yes, you can change the template folder location. No, you cannot make it any arbitrary folder on your computer. As an example, I tried making my C:/Windows folder a templates folder. That doesn't work either.

John,

You can designate just about any folder a templates folder, User Templates or Workgroup Templates. I suspect, though, that the Windows folder on your C: drive is reserved.

I have both of mine as well as my Startup Folder in folders on my computer that are synced to DropBox. The same thing would work for OneDrive. I have designated by default save location for custom templates to be the same folder as my User Templates folder. See The Distinction between the User Templates Folder and the Default Personal Templates Folder Word - 2013 and later.

The folder that working [Quick] Style Sets are in is different though,

As far as I know, this folder cannot be set by the user, certainly not in the user interface. (There may be a Registry entry; I do not know.)

Word 2007 & Later Key Data File Locations

Location: The English-language built-in quick style sets for Word 2007 should be in the folder:
C:\Program Files (x86)\Microsoft Office*Office12*\1033\QuickStyles ("1033" refers to US English). Word 2010: Office14 instead of Office12. Word 2013: Office15 instead of Office12. Office 16+:
C:\Program Files (x86)\Microsoft Office*root*\Office16\1033\QuickStyles

If you are running 64 bit Office on 64 bit Windows (or 32 bit Office on 32 bit Windows), the program files folder will be called Program Files (without "(x86)").

Your custom quick style sets (those you create) are located in a completely different location. That folder will depend on your operating system.

These custom files are in the following folders:

Windows XP Location:
c:\Documents and Settings{your username}\Application Data\Microsoft\QuickStyles\

Windows Vista & 7-11 Location:
c:\Users{your username}\AppData\Roaming\Microsoft\QuickStyles\

These are hidden system folders. If your Start menu has a search function searching for %APPDATA% will lead you toward the correct folder.

What you get when you are on the Design tab are [Quick] Style Sets.

While these are .dotx files, they are not what is normally described as Word templates. Follow the link to see what they do and do not contain and where they are stored.

You can back those up to OneDrive but I do not think you can move the ones you are using to OneDrive.

As I mentioned in my previous reply, the folder where you want to save cannot serve as a Templates folder. So Word will not automatically save the file there, even though you set the option to point here. Yes, you can change the template folder location. No, you cannot make it any arbitrary folder on your computer. As an example, I tried making my C:/Windows folder a templates folder. That doesn't work either.

I did a test here, and it doesn't appear that the local synced OneDrive folder can serve as a templates folder. When I set User Templates to that location, then choose File>New, there is no link to choose a template from that folder, though Word will automatically open the Normal.dotm file if placed there.

As a workaround. use File>Options>Advanced>File Locations and set the Workgroup Templates location to you local OneDrive folder. Then use File>New>Custom, choose the icon for the folder you just set, and select your preferred template to create a new document. This will be a more reliable method to get the line spacing that you set in the template.