DNS working but items not getting blocked

You are not fully updated to V4. Your FTL version is a few versions behind. The current version of FTL is V4.0.

*** [ DIAGNOSING ]: FTL version
[✓] FTL: v2.13.2 (How do I update Pi-hole?)

Run the following steps to attempt to update your Pi-Hole install:

sudo nano /etc/resolv.conf

Change 127.0.0.1 to 1.1.1.1, save and exit

pihole -up