Make sure you've PDM add-in enabled and you're logged into that.
I don't use PDM but from what your second image is showing, you are pointing to a folder location that has no templates in it (or at least the file names are not correct.
Can you open that actual folder and show all the files (including their extensions) that are in the folder.
since you are using PDM, do you have your permissions set correctly so SW can access that PDM folder?
Be sure your PDM path is correct - the way it is showing, it is saying your PDM folders (vault) are located on your local drive C:
Is that where your vault is located or is it located on a network computer. If it is on a Network computer then your path is set wrong.- It should show the network computer name and path - not your C: drive and path.
If you change the "Document Locations" path to a folder on your system that has your templates in it, will you see them correctly?
Make sure your template files are cached on you machine, i.e. Get latest version.
I would suggest you go into the Group settings and turn on "Refresh cache during login" for that folder. They will need to do a "Get Latest" as Michael Dekoning mentioned, but after that the Group setting will handle any changes in the folder.