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How do I create templates?

The azd template has this file structure defined by azd conventions

├── .devcontainer              [ For DevContainer ]
├── .github/.azdo [ Configure GitHub workflow or Azure Pipelines ]
├── .vscode [ VS Code workspace configurations ]
├── infra [ Creates and configures Azure resources ]
│ ├── main.bicep/ [ Main infrastructure file ]
│ ├── main.parameters.json/ [ Parameters file ]
├── src [ Contains directories for the app code ]
└── azure.yaml [ Describes the app and type of Azure resources]

The Azure Developer CLI (azd) tool helps you with the process of creating the template with azd init as the first step, followed by creation of the infra/ folder, updating of the azure.yaml file, and validation of template using azd up to provision and deploy resources.