Nbconvert creates templates folder at notebook open

I understand notebook templates are located in directories specified in the Jupyter Datra path. At install this is /usr/local/share/jupyter in my installation. It contains several template folders. But whenever a notebook is opened, it also created a templates folder in /.local/share/jupyter folder with only a subset of templates plus html which is not in system path location. This is new behavior in 6.0. Why is the folder dynamically created whenever a notebook is opened. Why arent the templates all stored in system path where html is missing.

This is an issue for me because I add paths to JUPYTER_PATH variable and so this templates folder is getting dynamically created in all locations in the path.