Your problem is transformer was payed out for 240volt mains like Canada. Yp
Your schematic gives the dotted lines for connecting to 120volt which I assume u have. Given this the blk/red and blk/what should go to switch which it appears dyou have done. Now the neutral wire from your power cord must be tied to the blk and blk/blue wires from transformer. Xdo
I can't see yourwhiteneutral connection in the pics but I am looking at over my iPad in airport on travel. Please describe your neutral connection. Also do no ground this connection.
Would be nice to do a volt measurement on each point in mains circuit.