Can I sell Embroidery Templates using your illustrations?

Unfortunately no, the licence does not allow you to make and sell templates or stencils in any way, so embroidery files come under this usage as well, due to the end customer essentially working with the resources within their embroidery or die-cutting machines.   Nor are you allowed to sub-license or license out any product that includes the resources.

You can however, create embroidery designs and put them on physical products to sell.