I've packaged a flow template with my managed package. In the subscriber org, when I create a new flow using this template, flow loads fine in flow builder, but gives this error on save -
This flow’s Source Template CloudFiles_Set_Connected_Folder is not a template or doesn’t exist.
The error code from network call is this FLOW_SOURCE_TEMPLATE_INVALID_REFERENCE
Indicates whether the process or flow is a template. When installed from managed packages, processes and flows can’t be viewed or cloned by subscribers because of intellectual property (IP) protection. But when those processes and flows are templates, subscribers can open them in a builder, clone them, and customize the clones. Available in API version 45.0 and later.
I was able to clone the packaged template and use it.