Universal Containers has Quote Terms specific to Product X and separate Quote Terms specific to...

Set the Product X Template Section filter fields to Product Code = Product X; repeat for Product Y.

Create a Term Condition for all Product X Quote Terms where Section = Template Section X; repeat for Product Y.

Set the Template Content field for all Product X Quote Terms to the Product X Template Content record; repeat for Product Y.

Delete the second Template Section and set the Group field on the remaining Template Section to SBQQ__ProudctCode__c.