I am not the original poster but I am having a similar issue with docx file generation.
I am using the specified template format as shown in your screenshot
However, this causes an issue when uploading the docx template to the plumsail processor or sharepoint. Both locations give me this error:
'Relationship tag requires attribute 'Target'.'
And power automate tells me that the hyperlink URL is malformed.
The doc complains when the address is in 'template format' rather than a valid URL.
How should we remedy this issue? I am not able to generate docs because of this.