It looks blocked contacts might sometimes be able to see your profile picture and last seen. It really seems a server side bug.
I recommend you to remove the blocked contact from your Address Book, to configure Privacy Settings on “My Contacts” and mute the blocked contact’s chat
Conversation
Obviously this is a very serious issue, so it should be fixed very soon.. but I hope WhatsApp is aware of it 😥 there are many tweets on Twitter about this problem if you try to search “whatsapp blocked”..
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