Apparently I shouldn't set NetVM on a TemplateVM. How then can I install new software on it?

I was going to set NetVM for fedora-36 TemplateVM to my VPN VM, but got the “Connecting a TemplateVM directly to a network is highly discouraged!” message.

So how else should I run “sudo dnf install lynx dnsutils” on this TemplateVM so all VMs using fedora-36 can also get this basic software?

Templates are using an internal proxy, they are able to access internet only trough the packages manager (apt/dnf). If you try the command you said in your post, it will work without any NetVM.

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Why templates don’t have network access

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