Thanks for getting in touch! I’m sorry about the confusion here, but this is by design. When selecting the “Let the project select the package” option on this reference a package feature, this will then defer the package selection to when the step template is added to a project. This is done by adding a parameter to the custom step template with control type
Package. When the step template is added to the project, the package name selection will be done there.
This feature was added to allow you to avoid having to “hardcode” the package name into the custom step template in order to more easily reuse the same template across multiple projects that require different packages.
I think this brings up a very valid point that this isn’t clearly described in the UI here, so I’ll try to think of some change to hopefully explain this better and help avoid confusion in the future.
I hope this helps. Let me know how you go or if you have any further questions going forward.