I've spent the whole day trying to resolve it by chatting with a few different MS help agents and so far no progress. Hi Kristen, I'm having the exact same issue, and it just happened yesterday for me too.
Click the Automatically Update Document Styles check box. Find and select the template you want and click the Open button.
Click the Attach button to open the Choose a File dialog box. Follow these steps: Choose Tools→Templates and Add‐Ins. Several later versions of Word include the ability for users to create their own formatting templates, allowing them to define a file in which the title, heading, paragraph, and other element designs that are unique from the standard Word templates.