When cloning Child records which “Copy template” is used?

Let’s consider an example: Suppose we need to Clone an “Account” along with its related child “Contacts”. So you will need to create a “Copy Template” of “Account” as well as “Contacts”. Then within the “Copy Template” of Account…in section “1..N Templates”… select the Contact “Copy Template” that should be used when child contact is being cloned.
If “Copy Template” is not selected in “1..N section” then we pick the first template, we find for that child entity.