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Sounds like there might be an issue with the database user you provided in that second step. Are you able to confirm that the database user you provided there exists in your MySQL system, and that it has full access to your “Blog” database (i.e. can does it have permissions to create tables and write to them)?
An easy fix would be to spin’off a droplet for a couple minutes, install WP on it and move it over to the old droplet by importing the already created DB and files. I’d like to help solve the issue itself but i’m rather unfamiliar with databases plus it’s probably faster my way. :D