OK, this is a bit confusing but bear with me. The issue is related to how WP interprets the “home” page. If you have a static page set for the Front Page, WP sees that as the “front page”. If the Posts Page is also set, that is the “home page”. So, in Theme Options, the “Home” page actually refers to the blog index page or Posts Page which, in your case, is set to Chapter Blog. As far as the actual Chapter Blog page is concerned, the theme does not recognize that page as anything but the Home page. It’s not a separate page type like “archive” or “single” so setting the layout and sidebars on the actual page doesn’t make any difference. To summarize:
Page Layout Hierarchy
Individual page layout -> Page type layout -> Global Layout
The exception is the static Posts Page. It inherits its layout from Theme Options > Layout > Home; any layout selected on the individual page is ignored.
Sidebar Hierarchy
Individual page sidebars -> Page type sidebars -> Default sidebars based on layout
The exception is the static Posts Page. It inherits its sidebars from Theme Options > Sidebars > Home sidebars; sidebars selected on the individual page are ignored.
The page set as the static Front Page is just a default page in the theme so it uses the following:
Individual page layout -> Default Page type layout -> Global Layout
Individual page sidebars -> Default Page type sidebars -> Default sidebars based on layout
Here’s a reference from the Codex.
Hopefully that will help you get the Chapter Blog page configured the way you want.