Add a template to a document library

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I have a word template that is saved as a .dotx. The document is protected (with no password) for the purposes of only allowing people to fill it in. I would like to add the .dotx file as a template in a document library, but when I do that and a person selects the template from the New drop down at the library level, they are prompted with a bunch of messages:
"The document you are trying to open is a template. Would you like to open and edit as a standard document?"
When I select yes, then another message pops up:
"Sorry, Word can't open this document for editing in a browser because it has document protection enabled for one or more sections. To edit this document, please open it in the desktop version of Microsoft Word". The two options that follow are Open in Desktop App and Open in Reading View. When I click to open in Desktop App, other message opens. All done. You can close this file now and the options are Continue here or try again. When I click Continue here it starts all over with the first question about opening a template to edit as a standard document.  In a sense I am getting nowhere.

I would like to be able to click the template from the new option and have it open, allow me to fill it out and then save with a name, either from fields in the form or a name I give it. Does anyone have a good resource to point me to? I am using modern SharePoint (from a Teams site).

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