You are probably getting a rewrite conflict with the has_archive
argument here:
$args = array(
'labels' => $labels,
'description' => 'Holds our services and service specific data',
'public' => true,
'menu_position' => 5,
'supports' => array( 'title', 'editor', 'thumbnail' ),
'has_archive' => true,
);
Set has_archive
to false
if you do not want the automatically generated archive.
I don’t really see the logic of not using the template system though.