This was a 32bit screen and I was disabling the UAE blitter emulation.
The OS was 3.9 if that matters in any way.
I still haven't figured it out, but I have moved on to other things for a little while.
You don't need to disable UAE blitter emulation, just set it to perform 32bit blits. It is independent of using a 32bit screen or not.
Have you copied latest rtg.library to your hardfile? (It is usually bundled with WinUAE)
With Picasso96 Variable Setter (PVS) disable Amiga Blitter but not Gfx card Blitter.