Template file is wrapping sub-routes

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I am using Next v13.5.4 with the new App router.

folder structure

The products/template.tsx is being applied in the products/page.tsx route, but also in the products/[id]/page.tsx sub-route, even though it shouldn't, according to the official docs.

I have tried changing template for layout and deleting the .next folder, because I thought cache could have been causing it, but with no luck.

Is there something I am not seeing?

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