To put a bit more flesh on that:
1. The mechanism has changed in Qubes 4.0, so the old defaults no longer
apply.
Instead of using restricted access to a netvm, in Qubes 4.0 the update
proxy is reached by qrexec calls. This provides better insulation for
the template.
You should not attach a TemplateVM to a netVM.
2. The docs should be clarified.
3. Open a terminal in the TemplateVM and run 'sudo dnf' or appropriate
package manager, as awokd says.
3a. For reason above do not do this in Qubes 4.0
3b. For reason above do not do this in Qubes 4.0
If you want to install software not already packaged, then download (and
verify) it in a online qube and qvm-move it to the TemplateVM. Be aware
of the additional risks involved.
unman