Set the Spacing Before and After to zero by clicking Format and then Paragraph in the Modify Style dialog box. That way, the setting would stick.
Note that when selecting "New documents based on this template" fails, you can work around it by opening the template directly (as a document) and modifying the style in the template. To resolve the underlying issue which is preventing you from changing the template, troubleshoot for poorly designed add-ins, as Charles has already suggested.
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Stefan Blom
Microsoft Word MVP
Microsoft 365 apps for business
Windows 11 Professional
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