URE’s “Force custom post types to use their own capabilities’ works only for CPT, which has capability type ‘post’ – default for WordPress.
If you set other capability type for CPT you really should create capabilities list yourself, but look how WordPress does that for capability type ‘post’:
create_posts, edit_posts, delete_posts, publish_posts, edit_publish_posts, edit_others_posts.
So you have to add not edit_blog, but edit_blogs, etc. Add ‘s’ to the end, if did not insert special multiple form at the CPU UI plugin.