So, you can usually edit the "template" workflow code in the template (when you have the full "ALM" license), but not in the "child" project(s), AND the "frozen" Template code always runs in the Child projects AND ignores the "local" workflow stored in the project (non-template).
Since you no longer have the ALM level license, you have a few ways to remedy this:
1) Upgrade back to the ALM license to quickly get back the cross-project/template behavior, then push the template workflow edits down to the "child" projects.
2) ABANDON the template/cross-project additions to the project(s) by "removing" the Template project. This will then unlock the template section of the "child" project workflow scripts and they can be deleted after migrating code down to the "normal" code modules (non-template named).
Then the project(s) will act like "normal" projects.