A family of Microsoft word processing software products for creating web, email, and print documents.
We've gotten so fed up with this issue and other OneDrive for Business issues that we've banned the use of OneDrive for Business with sync'd SharePoint document sets entirely.
And before someone asks, yes the templates are attached properly, yes we've tried a million work arounds and different combinations.
If a user opens a word document that uses a template that is sync'd it fails to open. The only work around is to open the template first, then the document, which is not a pleasant experience (especially when you might not know in advance that it has a referenced template and you have to crash word out to use this work around).
Disassociating the template allows the document to open fine.
Again, using the latest, up-to-date version of Word and had this since the very beginning.
Regards,
Steve