Dear User,
Good day!!
I understand your concern and to my knowledge, I would like to let you know that the template option when you upload feature in the Document Library will help you to select any Office files that stored on your local device and once it's uploaded, the selected file will be shown under +New in the Document Library.
So, when user create a new file by clicking on + New and clicking on the uploaded template, the new Office file will be created from the uploaded template.
Note: Every file will be created from the template, so the template feature will help the users to upload a template to the document library so that the users can the choose the uploaded template for creating a new Office file.
For example: I use the template feature and uploaded the document and after it successfully uploaded, I can see the uploaded template when I click on +New:
If there is any misunderstanding or confusion, we apologize and request you to share the more detailed information which will help us to better understand and guide you further.
However, if the information provided by me on your concern has helped to clear your doubts, it would be very helpful if you could mark the reply that helped you by voting the options under "Was this reply helpful?” as you can see here:
This way, you bring the answer to forefront of your thread, providing better visibility and aiding other users in finding valuable guidance.
Thanks a lot,
Sophia