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I have one document Library. Once Document Set Content type is associated with this library. Now if I create any Document Set in this library then inside this document set, I need to give option in 'New' action to create word document using Custom Word Template ( which is designed by using Quick Parts to display metadata).

To have Custom word template, we need to have one more content type which is inherited form 'Document Content Type', however in this case we will need to maintain two content types. Is there any way to achieve it by using document Set content type only?

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As far as I know, the answer is no.

If we delete the default document content type from the document library, we will still be able to create new documents in the document sets.

However, the new created documents are using the content type of Folder, which does not have the ability to carry a custom word template.

So if you want to use custom word template as well as document set in this library, you need to have at least two content types.

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