The customer was facing a problem with the heredity of allowed templates for Experience Fragments.
In their Development Environment, it was working fine but in Production, it did not.
In production, they needed to set the allowed templates on every folder where the editors needed to be able to create Experience Fragments while in dev the editors could create Experience Fragments in any folder without the need to add allowed templates.
While checking the customer’s instances it was noticed that on their Dev author for the Experience Fragments they had the following Allowed templates configured for Experience fragments 1 while on the Prod instance they had 2.
After setting the same allowed templates on both instances they were able to create Experience Fragments in Production as well without the need to add the allowed templates to each folder.
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When setting the allowed templates in Experience Fragments configuration the user configures the Allowed Templates for the entire Instance while otherwise, the user configures them at the folder level.
However, the templates configured at the instance level can be overwritten upon upgrade
More information about this can be found here 3
1 DEV
https://author-pxxxxx-eyyyyyy.adobeaemcloud.com/ui#/aem/aem/start.html
Experience fragments - configure - Allowed templates:
/libs/cq/experience-fragments/components/experiencefragment/template
/conf/folder/settings/wcm/templates/xf-template
2 PROD
https://author-pxxxxx-ezzzzzz.adobeaemcloud.com/ui#/aem/aem/start.html
Experience fragments - configure - Allowed templates:
/libs/cq/experience-fragments/components/experiencefragment/template
3 https://experienceleague.adobe.com/docs/experience-manager-cloud-service/content/sites/authoring/fundamentals/experience-fragments.html?lang=en#configure-allowed-templates-folder