Quick note that this is not an RCE in the typical sense that I can rock up to a Forgejo installation and execute code on the server. The attack vector here is via a template repo specified when initializing a new repo. The template repo could contain malicious code that then executes on the host server. So if you don't create new repos from mystery meat template repos, you should be ok.
You should be OK, but if attacker takes over your user (or any user in your forgejo instance) they can execute code on the host server - as you said yourself. In other words, it allows them to achieve remote code execution, so it's a RCE.