I cant get this to work and I dont understand why. I am trying to use a SharePoint list to select a file in a document library. This document library contains templates which I would like to use to populate. I select the Document Library where these templates are located but I onlly see 2 files and none of them are in there. I dont get it.
As per your screen shot, you have mapped your lookup column with Title column for all the documents as shown in below, Make sure that Title column value is set for each document. (Important: You can't set Name column in lookup column for document library as source, that is not possible)
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