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Why are times with events already scheduled being extracted in templates?

Templates allow you to schedule using available candidate dates and times that match preset conditions. However, whether a time slot is considered to be available depends on the type of event.
Please refer to the following table.
Events marked as “Free” on Google Calendar or Outlook will be extracted as candidate dates and times on templates.
Creating events on Google Calendar
Creating events on Google Calendar
Event creation page on Google Calendar
Event creation page on Google Calendar
If you do not wish to extract candidate times in time slots in which events exist, you can do so by changing the settings of the events already registered to “Busy.”