When you update a previous post with updated code it’s useful if you make a post saying that you’ve done that, because we aren’t notified when. you make an edit.
Normally, the Ethernet.begin command would specify the DNS server, gateway and subnet mask, like this…
Ethernet.begin(mac, ip, dns, gateway, subnet);
Gateway would normally be the IP address of your router, the DNS server could be the same, or something like 8.8.8.8
Subnet mask for a 192.168.1.x would be 255.255.255.0 but it’s not clear whether that is the IP address range you’re using.
I suspect that your device is connecting to your MQTT server, as its internal to your network, but that it doesn’t know how to get packets to the outside world, and if it does how to resolve the Blynk cloud server.
On a side note, there might be a better way to use Blynk. My home automation system uses MQTT only code on my devices, and Node-Red with the Blynk plug-in as the gateway to communicate with Blynk.
More info here if you’re interested in this approach…
Pete.