Open: Anyone in your organization can add or remove templates without approval.
Moderated: Admins with the Docs Templates privilege get an email request to approve each new template. The request is closed once any admin responds. Approved templates are added to the custom gallery. Rejected templates can be resubmitted.
Restricted: Only admins with the Docs Templates privilege can submit templates.
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Cause
User able to submit templates when they should not be able. User not able to submit templates when they should be able..