In the template I have, for example, this:
TextData = pos:(255,$title) fontsize:XL textcolor:black text:"<translate><!--T:12--> LibreOffice Release life cycle</translate>"
It renders without <translate> tags in the template view:
https://wiki.documentfoundation.org/Template:LibOReleaseLifecycle
as well as embeds in translated pages:
https://wiki.documentfoundation.org/ReleasePlan/es
However, in the source language page, the <translate> tags are rendered:
https://wiki.documentfoundation.org/ReleasePlan