Symptoms
When using the 'create list' step in a workflow, if you specify a list template to use, it ignores it and uses the OOTB 'custom list'
Diagnoses
In K2 you are able to create a SharePoint List using custom List Templates that have been created using the Create List wizard. However this functionality does not work as expected due to a limitation in CSOM which prevents the list from being created correctly.
Resolution
This is a known issue, and there is no workaround at this time until Microsoft addresses the CSOM limitation.
We've logged a case with Microsoft regarding this matter and will continue monitor this.