Two modern commentators, author Albert Jack[17] and Messianic Rabbi Richard Pustelniak,[18] claim that the original meaning of the expression was that the ties between people who have made a blood covenant (or have shed blood together in battle) were stronger than ties formed by "the water of the womb", thus "The blood of the covenant is thicker than the water of the womb". Neither of the authors cite any sources to support their claim.
I have heard this story of the meaning being the opposite, but it comes from people with no history background who cite no sources.
So maybe the contrarians in these comments can cite some actual reasons why they're claiming this is all wrong instead of glib rejoinders.