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Top Level here almost certainly doesn't mean the diagram of the template VI. Instead LabVIEW distinguishes between a Top Level diagram which is basically the entire diagram window of a VI and sub diagrams such as each individual frame inside a case structure but also the diagram space inside a loop structure for instance. The tricky part may be that the diagram itself may indeed only exist once and remains the same even for clone VIs. The actual relevant part is the data space which is separate for each active clone (when you have shared clones) and unique for each clone (when you have pre-allocated clones).

This is the modern 2020's equivalent of "works for me".