I uploaded the sketch by putting the chip in my Uno and uploading it normally. Then removed the chip and placed it on the breadboard.
The LED connected to pin 13 is connected correctly. (Triple checked) Also tried it with it backwards
The LED connected to pin 13 does NOT blink when the chip is reset or when power is applied. Seems that is another symptom of the same problem.
I have tried it without the crystal and loading capacitors and also same result. I have tried moving them around in different configurations as well. What is pictured was just the latest iteration.
Have checked pin 1 and it is getting 5V and gets nothing when the reset button is held down.
Thanks for the suggestions and your time to this point.