wp dashboard > ‘Page’ > add new > name it ‘Home’, publish
wp dashboard > ‘Page’ > add new > name it ‘Blog’, publish
wp dashboard > Reading Settings > ‘Front page displays’ select ‘a static page’ set ‘Front page’ to ‘Home’ page that you have added > set ‘Posts page’ to ‘Blog’ page that you should have added.
It doesn’t seem like you need to create a ‘Blog’ category. Just let your new ‘Blog’ page display the posts loop, which will be your index.php theme file.