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Here's what I did,

On creating the template:

1.) Added the toc placeholder by going to Words' References>Add table of contents on page 1.
2.) Added the variable $CONTENTS$ on page 2

On generating the document:

1.) I loaded the template created above.
2.) I used `replaceVariableByHTML` to substitute the $CONTENTS$, the html has h1 tags in them.
 

But the generated document didnt update the TOC section.
Am I doing something wrong ?