That is exactly how it's supposed to react, please turn off the ignition and tell us if the blue led stops flashing.
If it does, try to remote start the vehicle, If it does not start and flashes the parking lights or the red led on the unit 5x, then you need to do the jumper connection on the vehicle's OEM hood switch connector as shown in the guide.
AND PLEASE DO NOT TURN ON OPTIONS IN THE REMOTE STARTER SIDE THAT ARE NOT IN THE INSTALLATION GUIDE as we can see from your service number. you have done.
At this point, you have enabled options that do not apply to your installation, please do a master reset of the remote starter side using the valet switch (23x after entering programming mode) And ONLY enable 38.2 and test your installation.