Based on the Help article: https://one.workfront.com/s/document-item?bundleId=the-new-workfront-experience&topicId=Content%2FAd...
it says "You cannot customize the system update for templates, documents or timesheets, but Workfront does record system updates for these objects." However, a user cannot see any tracking on a template where changes to (deleting tasks as example).
WF Support confirmed that the 'Show System Updates' feature is not directly visible to end users on Templates and are not directly recorded in the UI under the 'Updates' section.
Making this visible would allow for tracking of any template changes especially unwarranted or authorized changes to a template without providing notes to changes.