Blend Tool Issue

Using X7 and the Blend tool, can anyone generate the desired result as shown in the image below?

If so, how and what parameters? This is crazy.

And please, before you suggest workarounds, know that this is only a very basic sample to illustrate the issue. The actual design is a more complex curve and the objects need to rotate perfectly.

EDIT: Please try using X7 only. NOT previous versions.