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Templates allow you to basically prebake your setup steps into a pre-built template - the net effect is faster jobs because you spend less time setting up the machine on every run. If you do not choose a template, the job uses your organization default template.

Templates

A template is a prebuilt environment for a job. It holds the tools and the setup your jobs need, so a job starts ready.
If you leave out template, the job uses the organization default template. If your organization has no default template, the job runs on the default Trunk runner image.