My apologies if this is posted twice, my first attempt has disappeared.
I have blurring enabled in my settings but as the attached image shows, the nsfw picture in the link preview is not blurred. I’m not sure if this is new functionality, I just haven’t seen it before.
You might have "Show NSFW Content" turned off in your Lemmy account settings. If that setting is off you won't be able to see any NSFW posts, even in your own profile. You'd still be able to open the post via a link, but they won't appear in any feeds.
This was the answer, thank you. I guess I’m used to that option being “hide nsfw content”, which I don’t ever select, I’d rather it be there but blurred.