I believe the setting is allowed by instance default instead of user setting in the app. It also fails to blur user avatars in nsfw posts viewed with blur enabled which results in porn being showed from the user avatars, even when the post its self is blurred.

It seems like this pr is what you're looking for. No idea what it will take to get it merged and then released

Nope. Still blurred no matter what.

I have the same problem, I've been trying different settings but nothing seems to work. I think it's a problem with the app because I don't encounter the same issue with my browser.

No post seem to be blurred in jerboa for me. All are unblurred by default.

I have not. I gave up and just went to the home page in Chrome, used the three dot icon to open the menu, and clicked "Install App". It puts an icon in your apps list that is basically a browser window with no menus. You can even change the icon and name. It shows up as a separate entry in your open apps too.

I had the option of show nsfw when I created my account. Maybe login through a browser, you may be able to set it there.