We have a user that is unable to apply templates to Rally work items that she has access to. She previously had access but now is unable to apply. I confirmed that the user has Edit access to the project and is even a team member of the project.
Templates are specific to Projects so if a user is not scoped to the project with the Template, the user won't see the Template.
Changing the project scoping to the correct project should allow the user to see the Template