I'm glad to hear you solve the problem ,if you have any issue about SharePoint, you are welcome to raise a ticket in this forum.
By the way, since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others.". and according to the scenario introduced here: Answering your own questions on Microsoft Q&A, I would make a brief summary of this thread:
[Upload custom sharepoint site template in Sharepoint online APPLY Template Section]
Issue Symptom:
I have an xml template taken from existing site using pnp powershell module and want to upload in SharePoint Template section (pic attached) so user can use them or apply them on their sites. Is there any way?
Current status:
I end up using Powershell PNP module to create site template which offers copying webparts as well. thanks
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