I was hoping someone could point me in the right direction on a strange problem. In our SharePoint 2019 system we recently installed when you go to a library and click New Document and select a content type with an associated Word template we named "Blank Document", Word is not launched. Instead a new item called "Document" is automatically created in the Modern library called "Document" but with no extension. When you open the "document" you see what looks like binary but there is a enough readable text to indicate that it is the "blank Document" template. After downloading the item and adding .the docx extension I was able to confirm that it was indeed the "blank document" template.
Here's the funny part if in the library you switch to Classic mode, everything works fine. So I was wondering whether Modern actually supports the ability to create a document from a template. If it does support it what issue could be stopping it from working in Modern given it works in Classic? I should point out the above behavior described above is not localized to one just library but happens in every library in our system.