Show selected template type when clicked

app/assets/javascripts/blob/file_template_mediator.js

@@ -117,11 +117,7 @@ export default class FileTemplateMediator {
         selector.hide();
       }
     });
-
-    if (this.editor.getValue() !== '') {
     this.setTypeSelectorToggleText(item.name);
-    }
-
     this.cacheToggleText();
   }
 

changelogs/unreleased/show_selected_template_type.yml

+---
+title: Show selected template type when clicked
+merge_request: 24596
+author:
+type: fixed

spec/features/projects/files/template_type_dropdown_spec.rb

@@ -75,6 +75,11 @@ describe 'Projects > Files > Template type dropdown selector', :js do
       check_type_selector_toggle_text('.gitignore')
     end
 
+    it 'sets the toggle text when selecting the template type' do
+      select_template_type('.gitignore')
+      check_type_selector_toggle_text('.gitignore')
+    end
+
     it 'selects every template type correctly' do
       try_selecting_all_types
     end