Faerie Upbringing (RoP:F): Balanced or Errata?

I am wondering why the Faerie Upbringing Flaw was re-written the way it was in RoP:F. I'd say it's more of a Virtue than a Flaw now!

First, it's no longer a Personality Flaw, but just a General Flaw. Note that General Flaws are supposed to be more burdensome than Personality or Story ones of the same value.

Second, now it increases the cap to Sympathy Traits by 1. A minor, but not insignificant, advantage.

Third, it still allows a character to spend experience on Faerie Lore at character creation. Again, a very minor advantage, but still an advantage.

Fourth, it still does not mechanically penalize the character in any way! It just suggests that the character may be (initially) unfamiliar with facets of human society. A minor disadvantage, but not enough to be worth a General Flaw by itself, I'd say, even disregarding the other advantages.

I was wondering if, perhaps, there had been some mistake in the handling of the text on p.110 (the last paragraph of "Faerie Upbringing"), so that it should be attached to the description of the Flaw on p.115, effectively giving a character with Faerie Upbringing a "free" Ability Block in five of the ten abilities listed there (Dominion Lore, Church Lore, Riding, Animal Handling etc.). I think this would make the Flaw far more balanced than it appears now.

I'm not sure why it was changed either... Maybe they wanted it to be an option for the Grogs? In any case, whatever the official classification of the "Faerie Upbringing" it doesn't give any mechanical penalty so its value as a flaw comes from the player roleplaying his lack of knowledge and the story opportunities it presents for the SG.

My reading of the paragraph on page 110 that you mentioned is that players who choose the Faerie Upbringing Flaw for their characters often, but not always, choose the Ability Block Flaw as well, with the blocked Abilities coming from the indicated list. So I don't think the intention was to have the Ability blocks be part of the Faerie Upbringing Flaw.

I agree with you that General Flaws all tend to have mechanical disadvantages (as opposed to Personality Flaws which often don't), but there is one (at least) that doesn't: No Sense of Direction. You could think about how your troupe would handle the No Sense of Direction Flaw and see if it sheds any light on how to handle Faerie Upbringing; YMMV. Or, just declare Faerie Upbringing to still be a Personality Flaw in your game?