Text sizing
Text is the part of a template that changes most from one render to the next: the same box gets a one-word title in one video and a full sentence in the next. The size settings of a text element decide what happens then. Either the font keeps its size and the box grows, or the box stays put and the font adapts, or the text runs out of its box.
You choose this with the five buttons of the Size row, in the Text section of the properties panel. Each one sets the font size to fixed or automatic, and the width and height to fixed or to Hug:

Adding text
Create a text element with the Text tool in the toolbar. How you place it also picks its size mode. A single click gives text with a fixed font size, in a box that follows the text (Fixed font size, box on Hug). Dragging draws a box of a set size, and the text fills it (Automatic font size, fixed box).
A click gives a fixed font size, a drag a box that the text fills
Fixed font size, box on Hug
The font keeps its size and the box grows with the text. This suits labels and buttons, where the size of the text matters more than the size of its box. A long text stays on one line, so give the width a limit if it could run out of the frame; the text then continues on a second line.
The box follows the font size, and a long text runs out of the frame on one line
Fixed font size, fixed box
Both stay as they are, and the text wraps inside the box. A text that needs more lines than the box has room for spills out of it, so this mode suits text whose length you control.
The text rewraps at the same size, and spills out of a box that is too small for it
Automatic font size, fixed box
The box stays as it is, and the font size adapts so the text fills it: large for a short text, smaller and on more lines for a long one. This is the safest choice for content you don't know in advance, such as a product name or a quote. The Minimum and Maximum fields keep the font size within bounds.
The font size follows the box, and every text fills it
Automatic font size, fixed height
The height is fixed and the font size fills it, while the width follows the text. Every text gets the same size, so a row of labels lines up, but a long text keeps going sideways.
The font size follows the height and the width follows the text, so a long one runs out of the frame
Automatic font size, fixed width
The width is fixed and the height follows the text. By default, the font size makes the text fill the width on a single line, so a short word becomes very large and a long sentence very small.
By default, the font size makes the text fill the width on one line
To make it wrap instead, change both Minimum and Maximum from their defaults of 1 vmin and 100 vmin. The text then takes the maximum size and continues on as many lines as it needs, and the box grows taller. It only gets smaller than the maximum when a single word is too wide for the box. That is what most titles and paragraphs need.
With a minimum and a maximum, the text wraps at the maximum size and the box grows taller