I’m able to apply the template and get the wireframe, but it’s not hollow, the skin is shaded gray. where should the template go to make an image like Sockratease with the arm being see through?
It goes in the “transparency” channel. In Carrara (and most other software) it’s called the Alpha Channel - no idea about Daz Studio (my crappy old system can’t even install DS, so checking is not an option).
Be prepared to “invert” the colors if needed!