With TLS 1.3 pre-shared key (PSK) a malicious or faulty server could ignore the request for PFS (perfect forward secrecy) and the client would continue on with the connection using PSK without PFS. This happened when a server responded to a ClientHello containing psk_dhe_ke without a key_share extension. The re-use of an authenticated PSK connection that on the clients side unexpectedly did not have PFS, reduces the security of the connection.
In wolfSSL release 5.8.2 blinding support is turned on by default for Curve25519 in applicable builds. The blinding configure option is only for the base C implementation of Curve25519. It is not needed, or available with; ARM assembly builds, Intel assembly builds, and the small Curve25519 feature. While the side-channel attack on extracting a private key would be very difficult to execute in practice, enabling blinding provides an additional layer of protection for devices that may be more susceptible to physical access or side-channel observation.