Thanks for reporting this bug! It has no direct influcence anywhere on the dashboard as the callback api.php?status is used instead. This one is reporting the correct status.
The underlying issue was that we decided whether blocking is enabled or not by counting the blocked domains in Pi-hole v4.x. However, with Pi-hole v5.0, the number of blocked domains does not change when you enable or disable blocking to speed up the entire process. Instead, we check immediately before a database lookup whether we can skip this as the user doesn't want any domains to be blocked at all.