I am very weak on network and firewall knowledge, but think that I may not have the MSTelemetryBlockList LAN rule in proper order. In the attachment, should the MSTelemetryBlockList be above the two Default IPv4 and IPv6 rules? I think that I put it at the bottom because I managed to lock myself out of Opnsense once and had to reinstall.
No, you have to drag the block rule to the top of the rule set.
Rule are probed from the top to the bottom. The first matching one wins. Means, if one matches others are ignored.
However, actually your pass rule would match, since they allow access to any destination.