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Set up this flow for testing because it was failing in the more complex flow I was building. "Populate a Microsoft Word Template" as you can see below. Nothing complex, two fields. Picture of the .docx below. The fields are plain text since rich text fields don't work.
Run the flow- it succeeds. Open the template... it's still blank. I've also saved the template contents as a new file... blank.
I went on to try to use this test flow and save the output as a new file and that seems to have worked. There may be a particular issue with the more complex file- I'll have to look into that instead.