Windows 11 Folder View Bugs. 1582 days old and counting...
The feature "Also apply this template to all subfolders" has been broken in Windows 11 since the KB5008353 update (build 22000.469) on January 25, 2022.
Details:
On Windows 11, using a removable drive (e.g. a flash drive), you cannot set the folder type for an entire tree using the "Apply this template to all subfolders" check box. It just leaves all the folders set as "General items".
On Windows 11, using a fixed drive (e.g. C:), you cannot override the folder type set by File Explorer's automatic folder type discovery, and automatic folder type discovery runs every time you open a folder, making File Explorer slower.
Note: If your "removable" drive mounts as "Local Disk" in Windows 11, then it's a fixed drive in terms of the described behavior.
Note: A workaround is to use the old Windows 10 Explorer which is still built into Windows 11. You can switch the default Explorer to that version using SwitchExplorer from my GitHub page. It can also be done with StartAllBack, ExplorerPatcher, and WindHawk.