There is a config.pro setting for the server.
dm_remember_server and the default is yes.
Formats are pulled from the Windchill library.
Templates and start parts are pulled from a disk on the server.
Drawing templates pull the format with them from Windchill.
When I revise a format, I save the new file in Windchill and a backup copy to disk.
Windchill will look in your local workspace first, then the server for your formats when loading a drawing.
When creating a drawing, you browse to the format_dir and select a format. However, Pro/E loads the format by name and will pull the format from your workspace before requesting it from the server. This can be critical if you make changes to your formats. We changed the company address and it took about a year before we had to stop rejecting drawings for having the out-dated address.