Fail2ban does not use DROP blocktype

Using Ubuntu 20.04 LTS, I have this in /etc/fail2ban/jail.local:

[DEFAULT]
bantime   = 3600
banaction = iptables
blocktype = drop


[sshd]
enabled   = true
protocol  = tcp
port      = ssh
filter    = sshd
logpath   = /var/log/auth.log
maxretry  = 3

But this is what I see when I list iptables rules:

╰─# iptables -L f2b-sshd -n -v
Chain f2b-sshd (1 references)
 pkts bytes target     prot opt in     out     source               destination
   13  1356 REJECT     all  --  *      *       222.187.232.205      0.0.0.0/0            reject-with icmp-port-unreachable
   18  1516 REJECT     all  --  *      *       221.181.185.153      0.0.0.0/0            reject-with icmp-port-unreachable
   17  1064 REJECT     all  --  *      *       222.186.180.130      0.0.0.0/0                  777 55854 RETURN     all  --  *      *       0.0.0.0/0            0.0.0.0/0

The problem is that it uses REJECT (with ICMP) instead of DROP.

The action.d/iptables.conf contains this:

# Option:  actionban
# Notes.:  command executed when banning an IP. Take care that the
#          command is executed with Fail2Ban user rights.
# Tags:    See jail.conf(5) man page
# Values:  CMD
#
actionban = <iptables> -I f2b-<name> 1 -s <ip> -j <blocktype>

It is the default iptables action file, shipped with the official fail2ban apt package for this OS version.

Also tried to add "blocktype=drop" under [sshd] but it has no effect.

I'm not sure how to debug this, because the fail2ban service does not log the actual iptables commands.

What am I missing?