Titleblock families are quite different to other families and the parameters do not work unless they are added to the project.
The best way is to configure the parameters into your template.
The process now works fine as shown above in steps 1 to 5. Steps 1 to 3 leave the question mark shown as red and uneditable, after steps 4 and 5 it appears blue and can be edited and is unique for each sheet.
Thanks for all of the input on getting this sorted.