According to the documentation, template-values.json is supposed to work in both sync and deploy modes. This does not appear to be the case with sync. Also every time the file is saved, pos-cli complains that it is not a valid file location.
I also seem to remember seeing somewhere that you can rename the json file but I can't find the documentation for that.
I am following the instructions outlined here:
https://documentation.platformos.com/developer-guide/modules/templates