Update: The bug only manifests itself if "Automatically insert signature" is checked in KMail preferences. Otherwise the templates honor cursor position. For some reason, while inserting the signature, the cursor position is reset and it is returned to the beginning of the first line, irrespective of %CURSOR in the template.
Update: The bug only manifests itself if "Automatically insert signature" is checked in KMail preferences. Otherwise the templates honor cursor position. For some reason, while inserting the signature, the cursor position is reset and it is returned to the beginning of the first line, irrespective of %CURSOR in the template.