I had a issue with this tool working. Here is how to replicate the issue: Use the Template Browser to open a template. Open the template editor and replace a group with another group. Hit OK. Then, in Corel, go to Edit, Undo. Then open the Template Editor again. Change to Black and White. Hit OK. Then it will change back to full color once in Corel.
This is an issue with Corel and they have been notified.