I downgraded game to 1.0.0 by setting version in steam -> Factorio -> properties -> betas. Started the game and all blueprints are gone. This is expected. It's why I made the backup in the first place.
I noticed that blueprint-storage.dat in ~\AppData\Roaming\Factorio has become a 1kb file. I replaced it with my backed up 5Mb copy. Ran the game and still no blueprints.
At this point, I think the game must be using a steam cloud synced version of blueprint-storage.dat instead of my ~\AppData\Roaming\Factorio. So I disabled Steam Cloud Sync and ran the game again. Still no blueprints.
I searched online and found out that Steam makes a local cache copy of the cloud synced file. I deleted the blueprint-storage.dat.zstd in in Steam\userdata\{userid}\{gameid}\remote. Ran the game and this error message came up
Finally, problem solved!Loading blueprint storage from cloud failed. Local version of the storage is being loaded instead
The question is, Factorio should not be still using the local cached copy of the steam cloud synced file while Steam Cloud Sync feature has been disabled. Is this a bug?