I think the issue has to do with item variants. The template for all variants does not have stock as per ERPNext design, coz as you can see the warehouse details are the same for the target and website warehouse.
Templates don’t hold stock as per ERPNext design. The design should either change such that the template should hold the sum total in Qty for all the variants it should not be editable or in the website if the variants have stock then the item has stock in the site