This applies only to templates in the Configuration Folder. Dragging new objects from a template with the mouse will not be affected.
Note that OS/2 sometimes has problems with this, as the title becomes editable for a moment and then, for some reason, the folder seems to be automatically refreshed, and the editing mode is cancelled. On my system, this appears to happen mostly in Tree views of folders. Sorry, this is WPS-internal.
Even if you select this setting,
you can still always have the settings opened
if you hold down a Shift key while selecting the template menu item.