Yeah in place of ancestors, you just have templates. Where the X’s are in your diagram, you just have more templates. It’s a completely ridiculous idea invented simply to square creationism with evidence for common descent. There’s no sensible reason to create anything by first creating a template, only later to derive more templates from the previous template, and then finally create the species by deriving them from the templates.
If you think God created species like that you’re effectively saying that God is faking the evidence one would expect from common descent. You’re not better than the creationists who say that distant starlight was created with the appearance of age, or that fossils were put in the ground to test our faith.
It just doesn’t make sense and it’s patently obvious to a rational observer that it’s just ad-hoc rationalizations.