We are seeing various queries in Blogger Help Forum: Something Is Broken, from owners of private blogs.
Is there a way to use a dynamic view, and have a private blog, just for us to view?And the answer here is simple
No, private blogs don't publish a blog feed - and dynamic views won't work.
This is not a capricious or pedantic decision by Blogger, it's a technical limitation.
Right now, it's not possible to authenticate access to blog feeds.
People who publish private blogs don't want unknown viewers - and that includes unknown viewers of the blog feeds. When you make a blog private, the blog feed is disabled, to keep unknown viewers from accessing the feeds.
Dynamic views are a type of full page feed reader, similar to Google Reader - and display the blog post feed, rendered on the viewers individual computer. Without feed content, a dynamic view is useless.
My Dynamic Template test blog, set to Private. No newsfeed = endlessly revolving gears.
So, sorry, private blog == no blog post feed == no dynamic view.