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I've contacted Formidable Forms support to see if they can tell me if this functionality is supported or not for avatars uploaded using their plugin. I did try another plugin, Simple Local Avatars, and the images you upload do display where you'd expect them to in WordPress. However you can only upload from the back end with that plugin. I don't know if or how it would be possible to integrate that with my Formidable registration process or one by any other plugin.
I'm continuing to research and test this problem. I have been trying to display the avatar using my theme's features in Customize. Today, I tried using WordPress's get_avatar function to display the Formidable uploaded avatar on a post and that does display it.
The theme author tells me that Simple Local Avatars overwrites/replaces the WP avatar, and if the Formidable has an option or a snippet that overwrites/replaces the WP avatar then Blocksy can show it. I have not found anything like that, but am asking Formidable about. I'd appreciate hearing from anyone who has deal with anything like this before, and may have a solution for me.
This issue was resolved with a fix to my theme, Blocksy by its developers.