Comment 2 for bug 1798481

VTE does have code in place to support these variables and they work for me. No need for reboot, not even to restart gnome-terminal, it should pick up the change immediately.

It stops blinking the cursor when the focus is lost, and restarts blinking it when the terminal is focused again. Are you sure this is not what confused you?

What are the exact values of your cursor-blink related values in dconf?

Could you please download VTE tarball (or git), and try the test app with debug options, like:
  tar xf vte-0.54.1.tar.xz
  cd vte-0.54.1
  ./configure --enable-debug
  make
  VTE_DEBUG=misc ./src/app/vte-2.91

Does it print a line beginning with "Cursor blinking settings"? How does it look like?

If you modify the dconf settings, does such a line appear again?

Thanks!