I’ve run some tests on this.
Initially, in 2020.4.2 I created a project with a basic
Deploy a Windows Service step and step template based on that step. Both configured with custom installation locations and
Manual start types.
When deploying, the first one created the service with a
Manual start type, the step template switched it to
After upgrading to 2020.5.8 and running the deploy again I saw the same results.
I then amended the step template and updated the usage in the project and created a brand new step template, configured the same, and added that to the project. After deploying both of these set the service to
So, it looks like there are two options here. Upgrading to 2020.5.8 and performing an amend and update on the step template should get it working again.
Or, you can avoid using the step template for now and add the
Deploy a Windows Service directly to the project and this should also work correctly.