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Getting the error - Value "MY.literal.l10" cannot be assigned to attribute "ChangeRequest:my" on creating from the template.

One answer

As far as I know, work item templates depend on and contains project area process specific values. You have to make sure that the project area process you copy the template to supports all the values. If necessary you have to manually adjust the template or you can not copy it across project areas.
Comments

We have replicated the same project area exporting the process template from Test to Prod, so I'm thinking the parameters should be same.

If you looked into the template XML and were not able to find a reference to the literal value or the attribute name, I have to assume that the issue happens when it is run. You could try to execute what the template does manually and see if the error happens too.