Description

Before Gutenberg 13.4 update we were able to choose page templates from the dropdown.

Now it's no longer working, page templates are not recognized by the editor.

Page template created like so and placed in page-templates directory.

<?php
/**
 * Template Name: Full-width Contained
 */

This is happening in there is block.json file present in the theme directory.

Step-by-step reproduction instructions

1. Activate Gutenberg 13.4
2. Edit any page
3. No page template dropdown displayed

Please confirm that you have searched existing issues in the repo.

Yes

Please confirm that you have tested with all plugins deactivated except Gutenberg.

Yes