I am having the same issue. On 8.02, and 8.5. When I set the property, it appears to be set, but if I close the database, and re-open the properties, the check box is cleared again.
I am thinking that this is an authority or configuration issue since another user can set that property. I am in the administrators group though, so I don’t know where I could be missing authority.
Subject: Problem was multiple databasers with teh same master template name
After some thinking and digging around in catalog.nsf I found that the problem was that there already was a template on the server with the exact same name.
So it was good that it didn’t save it, but I would have appreciated a “heads up” or popup or warning or something obvious.
I created a local replica of the template database and it was already checked when I opened the database properties! I was then able to refresh the design of the main database from the local replica.