internal link button supplies bad template
I think you are misunderstanding that link. It is asking for the link-name, i.e. its page name. That is all that is required to make an internal link. However, we request that you use the pipe and text, as well as "Special:myLanguage:" so that it works better for translated pages and other-language readers. Naturally the mediawiki tools don't know about that, and it's probably a major task to adapt them.