The scanner definitely shouldn't just continually blink after turning it on. With mine, it takes only about 10 seconds to go through its startup self check, and then the light is on solid. And it shouldn't require pressing the button again to get the light to stay on solid.
The System Settings are correct. That is the hardware model number for a V850, and 10.4 is the current driver.
Test to see if something in your normal user account is causing the problem. Go to System Settings > Users & Groups and click the Add User button. It will ask for your admin password. Enter that. You'll then get this panel:

Standard account is fine. Give it any ol' name and a very easy to remember password. It's just for testing and you're going to remove the account afterwards anyway. When the necessary information is filled in, click Create User. One more question will appear. Most people choose to keep automatic login.
Now, go to the Apple logo at the top left and choose to log out of your account. At the login screen that will appear, choose the new account and login to that. You'll have to go through a bunch of new user setup questions. Answer them however you like (I usually skip entering my Apple ID since it's going to be a short lived account).
Eventually, you'll be at the desktop of the new account. If the scanner is blinking, turn it off, wait a few moments, then turn it back on. It should go to a fixed light after the short startup sequence. Launch Epson Scan 2 in the Applications folder and see if it connects.
If it works, something in your normal user account is causing the problem. If you get the same issue, then it's a system wide problem. For the latter, it could be a bad cable, or a cable that simply isn't seated fully/correctly.
To get rid of the new test account, log back in to your normal account and go back to System Settings > Users & Groups. Click on the "i" icon to the right of your test account. Click the button, Delete User. Click the bottom radio button to Delete the home folder so the entire test account gets removed. Click the red Delete User button.
You'll notice the fast user switching icon will then be stuck at the top right of the screen, even though you're back down to one user account. With the System Settings still open, click on Control Center at the right. Then in the right column scroll to the Fast User Switching heading and change Show in Menu Bar to Don't Show.