I was having the same problem as everyone else is lamenting here. I finally noticed however that my Macbook was actually on battery power, though the power cable was attached, and in the settings for displays, for when on battery power, there is no option you can set to not sleep when the lid is closed. I had thought my laptop was on the wall power, so I thought the no-sleep option that is only active when on wall power, was active. It was not, and the laptop has a sensational battery life so I just did not notice until the battery was at 1%, when I thought, dag nab it, and looked under the desk to find the white power brick knocked akimbo from the socket. As soon as this was corrected, and the laptop was back on wall paper and the battery was charging, all the expected behaviors returned. The laptop secondary screen remained on when the lid was closed, and the device did not sleep, and therefore did not blank the screen. So, in my case, the entire brain-straining Apple-teeth-gnashing ordeal came down to not being plugged into power and thinking I was, the unobtrusiveness of being on battery power (I had settings to not dim anything or otherwise change performance on battery) and the long battery life. Problem thankfully solved, as least for me, and I hope for at least a few others.