What problem does this address?

Right now, the navigation block has inherent limits to what can be added to it which makes sense. However, the current flow is a bit confusing as it nudges a user to browse all blocks and then doesn't show any indication that only certain blocks can be used:

What is your proposed solution?

Either the browse all option needs to be removed for now or there needs to be some sort of messaging that says only specific blocks can be added.

This is somewhat related to this other issue around adding some introductory text to better guide a user: #24007