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I am trying to create issues templates for my team but all signs point to the same conclusion that I need a third party app. Is this correct? is there a built in option for this?
Jira does not have templates natively (because they tend to lead to people not actually filling anything in, so you end up with thousands of duplicate stories and issues with junk descriptions)
You will indeed need to find a 3rd party templating app. If you do, I strongly recommend making life harder for your people - put validation on the "create issue" transition so that it rejects people who have not filled in anything substantive.