2.x Upgrade: Using SDC component template for entity type display

Have you activated ui_patterns_layouts sub-module ?

Yes I have the ui_patterns_layout module enabled. I am able to set up everything in the UI the same as in 1.x. The issue is that the HTML output isn't using the .twig template included with the SDC component. It could be something we have custom in the back-end but I had assumed this functionality was part of UI Patterns. Thanks for the response.

Can you share your entity view display YAML file?

Sure, I've pasted it below. I did remove all the hidden fields from the hidden section and config dependencies to try to reduce the lines here.

Also it does sound like what I'm trying to do is supported in 2.x still, and something else could be preventing it from working? I can do some more troubleshooting on my own if that's the case but I wanted to confirm that functionality is intact in 2.x, because I got mixed results when looking it up,

langcode: en
status: true
dependencies:
  config:
    - core.entity_view_mode.node.org_card
    - field.field.node.org_news.layout_builder__layout
    - field.field.node.org_news.cm_news_featured_media
    - field.field.node.org_news.cm_news_publishing_date
    - field.field.node.org_news.cm_news_source
    - field.field.node.org_news.cm_news_topics
    - field.field.node.org_news.cm_ext_news_dek_long
    - field.field.node.org_news.cm_ext_news_news_source
    - node.type.org_news
  module:
    - datetime
    - ds
    - element_class_formatter
    - field_formatter_class
    - link
    - org_media
    - user
third_party_settings:
  ds:
    layout:
      id: 'ui_patterns:ext_profile_helper:news_vertical_teaser'
      library: null
      disable_css: false
      entity_classes: all_classes
      settings:
        label: ''
        ui_patterns:
          component_id: 'ext_profile_helper:news-vertical-teaser'
          variant_id: null
          props:
            attributes:
              source_id: attributes
              source:
                value: ''
          slots: {  }
    regions:
      news_vertical_teaser_image:
        - cm_news_featured_media
      news_vertical_teaser_headline:
        - node_title
      news_list_publishing_date:
        - cm_news_publishing_date
      news_topics:
        - cm_news_topics
      news_source:
        - cm_ext_news_news_source
      news_dek:
        - cm_ext_news_dek_long
      news_url:
        - 'dynamic_token_field:node-news_content_url'
      news_external_url:
        - cm_news_source
    fields:
      'dynamic_token_field:node-news_content_url':
        plugin_id: 'dynamic_token_field:node-news_content_url'
        weight: 6
        label: hidden
        formatter: default
      node_title:
        plugin_id: node_title
        weight: 1
        label: hidden
        formatter: default
        settings:
          link: false
          'link class': ''
          wrapper: ''
          class: ''
id: node.org_news.org_card
targetEntityType: node
bundle: org_news
mode: org_card
content:
  cm_news_featured_media:
    type: media_multimedia_formatter
    label: hidden
    settings:
      view_mode: default
      link: false
      image:
        image_formatter: responsive_image_style
        image_formatter_image_style: cta_2x_1014x676
        image_formatter_responsive_image_style: card_3_2
        image_formatter_view_mode: default
      video:
        video_formatter: entity
        video_formatter_view_mode: default
      other:
        view_mode: default
    third_party_settings:
      field_formatter_class:
        class: ''
    weight: 0
    region: news_vertical_teaser_image
  cm_news_publishing_date:
    type: datetime_default
    label: hidden
    settings:
      timezone_override: ''
      format_type: org_month_date_year
    third_party_settings:
      field_formatter_class:
        class: ''
    weight: 2
    region: news_list_publishing_date
  cm_news_source:
    type: link
    label: hidden
    settings:
      trim_length: null
      url_only: true
      url_plain: true
      rel: '0'
      target: '0'
    third_party_settings:
      field_formatter_class:
        class: ext-news-ext-link
    weight: 7
    region: news_external_url
  cm_news_topics:
    type: entity_reference_list_label_class
    label: hidden
    settings:
      link: true
      class: cm-list-unstyled
      list_type: ul
    third_party_settings:
      field_formatter_class:
        class: ''
      ds:
        ds_limit: '1'
    weight: 3
    region: news_topics
  cm_ext_news_dek_long:
    type: wrapper_class
    label: above
    settings:
      class: ''
      tag: div
      link: false
      link_class: ''
      summary: false
      trim: 200
    third_party_settings: {  }
    weight: 5
    region: news_dek
  cm_ext_news_news_source:
    type: entity_reference_label_class
    label: above
    settings:
      link: false
      class: ''
      tag: span
    third_party_settings:
      field_formatter_class:
        class: ''
    weight: 4
    region: news_source
hidden:
  layout_builder__layout: true

You are using Display Suite. Is https://www.drupal.org/project/ui_patterns_ds → installed?

Yes, ui_patterns_ds is enabled.