Here is an announcement from MSFT regarding file template management. Just checked my tenant and I do not see it yet so cannot give a firsthand experience. But going through the blog, it looks like the "Edit New menu" and "Add template" are new. With this, it is possible to add document templates to SharePoint document library content types.
It will be interesting to see if this is available for both the classic site and modern site (library)? The menu dropdown is slightly different between them.
While the title and description include "manage" in it, without a centrally managed deployment support (to all of the sites), the management part kind of weakens. I would think, from what I see in the screenshot, that a site owner will be able to create a template and upload. That could be an interesting governance experience.
Now, what about ODFB? Each user's personal experience in their ODFB will differ from that of their experience in their team site. A user is an Admin of their ODFB, that could add to the fun. In the chaos...some thrive.
Read more: https://techcommunity.microsoft.com/t5/Microsoft-SharePoint-Blog/Announcing-new-file-template-management-for-document-library/ba-p/238374
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