Default Blog Template is not available to be picked when New User Register site


I have a multisite networking using Prosites. I want the users while signing up to be able to select a theme so that all set up and posts will get copied to the new site.

For now, I have set up a SINGLE default blog template using New Blog templates(called premiumtemplate). However it is not functioning properly; the two key issues are:
Problem 1: When as a superadmin - from site network page I am creating a new site, the template(premiumtemplate) is available to be chosen. However, after I chose the template the posts/pages/admin setups for various plugins are not getting copied, only the theme gets copied.

Problem 2: When a new user trying to create a site both from the front end or back end admin menu by clicking on Add Sites, the new blog template is visible as an image but there is no radio button to select it by the user. Hence default 2014 template blog is getting created.

I think I may be missing some set up steps. This is little confusing. Could you please guide on why it may be happening. Do I need to set up Default Template plugin as well. The functionality I am looking at I that Pro-Users while signing up can see multiple themes and chose the one that they want to. All posts, pages, plugin settings etc. should get copied based on their Default theme selection.

Kindly let me know what I may be missing.