If you tick the check box and save it says: changes have successfully been done, but after a moment if you look it back then it get unchecked itself. Therefore, the domain won’t be redirected to www naked redirection.
Also check: What is Domain Name & Web Hosting
Is it a big issue for my blog?
As far as I know yes, because many of our visitors are newbies and they don’t know these things. They just enter the URL and want to access the site as quickly as possible. So, if they faced a 404 error, they wouldn’t stay longer to find the other ways.
In SEO prospective, it is essential that you keep your domain redirection etc 100% clean. Because search engines are sending you visitors as on regular bases and many of your visitors may face these issues on your blog pages, so it can really affect our blog’s SEO.
I guess, blogger team will resolve the issue sooner, but for the moment we can just hope for. I’ve tried to resolve the issue myself, but I didn’t succeed.
Update:
Hey guys, here is the temporary solution for ridding of this problem, copy the given URL below and paste it into your browser’s address bar and then follow the given steps there and you will be succeeded to redirect your domain:
http://www.extremetechblog.com/blogger-naked-domain-redirection/
Who are facing these issues expect me?, please write in comments section and also sharing this post with friends is appreciated! Be Peaceful!