This was working. I believe it may have broken with 1.0.27.
My featured posts are not showing in the blog, but I have configured Ridizain to show them.
I have a single category for "Select Blog Feed Category". I have a tag name in the Featured Content menu, and I have enabled "Show featured posts in blog feed?". I just confirmed that my featured posts have the tag value and the blog category.
If I remove the tag value, the posts become visible in the blog.