I discovered that the Templates are sorted (ordered by) Modified Date and not by Filename! Which is why they get shuffled around if you edit them. It’s very annoying to say the least! There should be an option for the user to select how they want them sorted: Modified Date, Created Date, Filename with sort direction option. I mean it is a Core Plugin after all.
This issue has been talked about since 2021 and here we are still talking about it!