I have worked with MS support on this issue for a while and none of the proposed fixes have been successful. Support has "given up" - at least with me and this issue. So it looks like we are all waiting until MS finds a solution and deploys the fix in a update. The latest from MS support as of September 7, 2022, 1607hrs EDT:
"Given that the workaround solutions that I've provided didn't work, We need to wait for the fix to get deployed. We currently don't have an ETA or when will the fix will be deployed but rest assured that our product team is currently working on it.
Here is a public available articles/forums that describes and provide update to the issue
How to stop Outlook 365 retrieving template - Microsoft Community
Once again, we do apologize for the inconvenience this issue has caused. I'll check and provide you update from time to time. Let me know if you have questions or clarifications. Thank you."