This has been my main issue. It is not possible on my machine. The icons are not right since either a windows or office update. There is not a separate open and edit in the right click connect menu.
This should NOT be the case.
Try repairing office on your machine.
Repair an Office application - Office Support
I apologize if this has already been tried. This is a long thread, my memory is short.
User Templates and Workgroup Templates are Word jargon, not ordinary English. They are important, designated, locations. These folders can have any name at all, but they are designated in Word's options. To Word they have special meanings and are given special privileges.