Hi Mark,
Did you try to use one of the block shortcodes? For example, /image (then it should appear the option to select the image block).
Another valid test would be to deactivate your plugins, to check if there is a conflict.
Darn. I tried both of those, and no joy.
I’ve copied my site to a VM on my local workstation, then Deactivated all plugins. Still same problem: The Blue Toggle Block Inserter (like above) does nothing.
Thinking…
And the theme, did you try to change it?
Perhaps you can ask for help directly on the Gutenberg support page:
I would check if the problem also happens to the Classic editor, even to different ones (Elementor, for instance).
I just disabled all plugins and switched to the Twenty Twenty-Two theme. Still the same issue: The Blue Toggle Block Inserter icon is not clickable.
More, I spun up a VM and loaded a pristine WP 6.1.1. on it. NO PROBLEM there with the Gutenberg Blue Toggle Block Inserter! I click and all Block types pop up on screen.
Thanks Euler, I am going to post this over on the Gutenberg board.
Mark