How can I have bugs that block stories appearing nested under the story in the scrum board, like sub-tasks, but I do not want to use Bug Sub task
Short answer: that is not possible with built-in features unless using a "bug subtask" work item type with the Story as the parent.
A workaround to show the Bug / defect below the relevant Story, but without the nesting like subtasks, is to re-order the Bug using either drag-and-drop or the REST API to change the Rank field (if you can identify the "parent" Story).
Kind regards,
Bill
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