Hi,
NFS will be sparse. Preallocate is relevant for block storage.
There is a fix to change the UI to display the format (RAW/QCOW2) of the disk instead of the type (Sparse/Preallocated) [1].
When creating a VM from a template, If you choose thin provisioning the disk format will be alway QCOW2, keeping the disk from the template as is read-only and creating a disk only for the diffs.
If you choose Clone, then the whole disk will be copied and you will have a new copy of template disk in whatever format you want (Raw or QCOW2).
>What happens if you clone a source VM which is using "thin" ?
The VM cloned from a thin templated base VM will be created with a full copy of the disk (as in "Clone" when creating from template)
>Interesting. Is there a way to "merge" the changes ? (I mean to change it from being "thin provision" after its creation and make it an independent VM)
No, a VM created as thin will remain like that. You can clone a new VM from it and them you will have an "independent VM"
>When you create a template for the first time, it seems you can't choose between clone and thin, which one is used ?
When you create a template you make a read-only copy of the VM disks (Clone) . You can choose the format of the disks (RAW/QCOW2)