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Actually it is not working in 17.3.0. Let me explain.
When generating report from the reporting repository you can not use custom report template at all. The button 'Generate report' is disabled and there is a hint on the tab.
Custom report templates can be used only when generating report for loaded design (existing, imported etc.).
When using custom report template there is single paged tabular view report. There is no TOC.
If you see TOC it is because the report is generated with default or 'standard' template.
Thanks Dimitar for shedding some light.
Well, I must have my wires crossed then. This may have worked in the past, but it clearly does not work now - with either version.
I will use the standard template then. Since the dictionary I am publishing to my users is extensive, having that TOC is very helpful for navigating all the information. The formatting might not be exactly what I want, but it is close enough. Cheers.