How does one use Blob Output to overwrite a templated file / sheet / sheet range / combo?

As per the title, I am having a template fixed by an external party.

Problem:

The output file is a template that can sometimes be password protected / user restrictions in place.
Using the Output tool, it works sometimes and it fails sometimes, especially on different environments.
I was doing research and came across Blob Outputs that can do something like that, but would like some guidance.

I cannot give the template as it is confidential, but I can give a sample Input and sample Template Output.

The end goal is just to write the data from Alteryx to the output with respect to the problems above.

The issue with the sample is that I am not sure how the password protection or user restrictions are set in place. So I'm looking to account for that as well. The template output given is NOT password protected and NOT set with user restrictions.