HI there, are you able to share a link to your site so we can take a closer look?
On my test site I am able to set a homepage and a posts page, but I do see that posts are displayed on that page for me.
To clarify, do posts show if you set the site to “show posts on front page?”
Thanks for the additional info!
Also, one option you can consider is to use a blank page (call it the “blog” page or whatever title you wish) and then add the Query Loop Block, which will display a feed of blog posts.
An example of this is shown on the demo site here, so you can see what it would look like PdgTYS-D-p2
The Query Loop Block has a ton of interesting options, so if you have not used it before, I recommend this video that shows what it can do: https://wordpress.tv/2022/03/25/taking-advantage-of-query-loops/
I hope this helps!