Just to update. This still has not been fixed. In fact, it has been compounded.

The main context menu now includes an item for Open with.... That, also, creates a new document rather than opening the template. (The same is true of Open With on the expanded context menu.) Right-click > Open for a template in Windows 11 creates a new document; it does not open the template for editing!


I hope people will continue to post feedback on this.