Thank you for the clarification.
That is selected and I am still having to chose the drawing template.
Thank you again,
The described behavior of your coworkers machine sounds like they have a sheet format saved on their drawing templates. By default, the drawing template does not have a sheet format applied to it, which would require you to select one each time you start a new drawing using that drawing template.
If you start a new drawing, then choose the sheet format you wish to use by default, you can then save and overwrite that specific drawing template (File > Save As > Drawing Template). Now each time you use that template it will not require you to select a sheet format.
You can also choose to move all company templates to a shared drive, then everyone would be using the same drawing template and sheet format. Just make sure all locations are set correct in the System Options > File Locations.
As Benjamin Modic explained, some drawing templates have a sheet format embedded and some don't. There is a more detailed explanation about halfway down at What's the difference between a sheet format and drawing template?.
Thank you for your help.
I had two locations added for document templates. I deleted the old location and the problem resolved.