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If you're also in that scenario, try this:
- If you group your Steam friends into categories, remove those categories. Even if you have your friends blocked, having them categorised will (apparently) still cause the game to try to cache them.
- Exit the game and restart Steam after you've blocked everyone and/or removed the categories. The game won't register the changes to your friends list otherwise.
I'll keep helping, but I'll ask to bear with me if the achievement doesn't unlock first try. I won't go away until I see it unlocked.
Thank you so much for posting this and it is also very well put together and organized!
10/10! I wish you the best.