it does not do multiscale matching. looks like you expected it to do that.
I’m guessing here because you have not shown me actual data. your illustration appears to resize the pictures to be “same”.
given same-scale images, template matching could reasonably detect that, maybe.
it’s not the ultimate solution to every conceivable problem.
it’s a good solution to some problems.
some other problems can be made to fit. but you need to know this.