For the color shifting, you probably have the template caved with a different color profile than the cutouts.
I recommend using sRGB for both the cutouts and the template? Which profiles are you using?
For the “fuzziness”, it sounds like the cutouts need to upsize to fit into the template.
What is the pixel dimensions of the cutouts?
What is the pixel dimensions of the templates?
IS the image being displayed more zoomed in on the template than in the cutouts? Fo example, if you are shooting full body, but then expanding the image so it is half body in the template then it may need to scale up.