Answers
What is the difference between muting and blocking?
Muting stops the notifications and leaves everything else intact. Blocking stops the person reaching you at all. Muting is for a noisy group; blocking is for a person.
The two get conflated and they solve different problems. Most complaints about a group chat are volume rather than people, and muting is the correct and socially costless answer.
Blocking is a safety control. It is silent, immediate, and needs no justification, and it should not be weighed against the awkwardness of it being noticed — it is not noticed.
On Naven blocking hides messages and reactions together, and Settings lists everybody blocked with a way back.