https://www.reddit.com/r/aws/comments/ovdlqy/ec2_image_vs_template_vs_create_more_like_this/
Create image: this will create a custom AMI from all of the software and settings of the inside of the instance. In other words, a full copy of the OS, all settings/configuration, and installed software.
Create a template: this will create a Launch Template , which will define all of the settings within EC2 itself. This will use the original AMI and none of the settings/configurations or installed software.
Update the created Launch Template generated in step #2 to use the AMI you generated in step #1.
Then you can go to the launch template and launch new instances that will be an exact replica of your original source instance.
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