VS DTE solution2 addfromtemplate adds project but $safeprojectname$ isn't replaced

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C#

Visual-Studio

extension

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I have the following code which adds a project to the current solution from a specified template:

Solution2 solution = GetSolution();
 string templatePath = "...";
 string genProjectPath = $"C:\\TestVSIX\\{projectName}\\";
 try {
     solution.AddFromTemplate(templatePath, genProjectPath, projectName);
 } catch (Exception ex) {
     System.Diagnostics.Debug.WriteLine(ex.Message);
 }

It seems to work properly to a point, the project is added, the files all seem to be included, but only some of the replacements seem to have happened.

...
<Configuration Condition=" '$(Configuration)' == '' ">Debug</Configuration>
<Platform Condition=" '$(Platform)' == '' ">AnyCPU</Platform>
<ProductVersion>
</ProductVersion>
<SchemaVersion>2.0</SchemaVersion>
<ProjectGuid>{9ED4A85F-9A60-4FEB-9736-7591511FE893}</ProjectGuid>
<ProjectTypeGuids>{349c5851-65df-11da-9384-00065b846f21};{fae04ec0-301f-11d3-bf4b-00c04f79efbc}</ProjectTypeGuids>
<OutputType>Library</OutputType>
<AppDesignerFolder>Properties</AppDesignerFolder>
<RootNamespace>$safeprojectname$</RootNamespace>
<AssemblyName>$safeprojectname$</AssemblyName>
<TargetFrameworkVersion>v4.6.1</TargetFrameworkVersion>
<MvcBuildViews>false</MvcBuildViews>
<UseIISExpress>true</UseIISExpress>
<Use64BitIISExpress />
...

Where the matching proj file template chunk was defined as:

...
<Configuration Condition=" '$(Configuration)' == '' ">Debug</Configuration>
<Platform Condition=" '$(Platform)' == '' ">AnyCPU</Platform>
<ProductVersion>
</ProductVersion>
<SchemaVersion>2.0</SchemaVersion>
<ProjectGuid>{$guid1$}</ProjectGuid>
<ProjectTypeGuids>{349c5851-65df-11da-9384-00065b846f21};{fae04ec0-301f-11d3-bf4b-00c04f79efbc}</ProjectTypeGuids>
<OutputType>Library</OutputType>
<AppDesignerFolder>Properties</AppDesignerFolder>
<RootNamespace>$safeprojectname$</RootNamespace>
<AssemblyName>$safeprojectname$</AssemblyName>
<TargetFrameworkVersion>v4.6.1</TargetFrameworkVersion>
<MvcBuildViews>false</MvcBuildViews>
<UseIISExpress>true</UseIISExpress>
<Use64BitIISExpress />
...

Note that $guid1$ updated while the $safeprojectname$ did not.
Additionally, $safeprojectname$ was not replaced in other files of the project as well.

What I have tried:

I attempted to bind a Wizard class to the template, but it doesn't seem to fire when adding the project using the AddFromTemplate method (research seemes to confirm this).

Additionally, I looked for some mechanism to force the replaces after calling AddFromTemplate, but I did not find any mention of such a thing.

I assume I could manually implement replacements, but before I bother, I'd like to understand why this isn't working properly.