We have the ability to specify creation restrictions with Template providers. AWM also automatically generates a template provider for a new app and, by default, sets a creation restriction to the app's data space.
We should use this mechanism to promote (i.e. show first) and even preselect the template provider that has a creation restriction matching the current location from where the user pressed the Create button.
In the future, this would also allow us to remove the "Add new entry" button in AWM apps and just use the Create UI with the template pre-selected.
In the current state (i.e. while we still have the "Add new entry" button), it will simply help users that are pressing the Create button instead of the app's "Add new entry" button and getting confused with all the templates.