Hi @john john
According to the content provided, as far as I know, the following situations may occur:
1.If you need to use the same template in multiple document libraries, then you need to update the template in all locations when a change is required. This may cause inconsistency and extra work.
2.If you use the same template to reference files in other document libraries, then you may encounter permission or access issues. For example, if you want to create a file based on a template in another document library, but you do not have access to that document library, then you may receive an error message.
3.If you use the same template to reference files in other document libraries, then you may lose some customization or management features. For example, if you want to set different metadata or version control for different document libraries, then using the same template may limit your options.
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Best Regards
Cheng Feng