blend tool not working properly? Or is it me?

The result should look like this where the outer layer and inner layer blend to make exact blends between.

Select an equal number of anchor points (preferably the corners of those paths)

Then take the blend tool and click on two corresponding points

This might give a better result.

I am wondering what results you are expecting?

You can change the Blend tool options to change the way it blends.

And you can expand the blend to make a new object out of each piece,

If that doesn't help, please say what you are trying to achieve.