Ok, had a little test with the Electrum/Trezor set up.
Set up electrum on a comp, swept the private key of a small paper wallet. No issues there, all as expected.
Waited for confirmations then tried to send the coin to a blockchain account.
Just curious about this one, but why on earth would you want to do that? Going from a Trezor+Electrum setup to a Blockchain.com wallet is for sure a downgrade; on privacy, coin control and security
Not quite sure of what you mean there. Should I have done that before sweeping the private key into electrum?
If the wallet you want to sweep is either nested or native Segwit, yes. Otherwise, the private key will be read as a Legacy one.
Did a google search and found nothing. Could it be because the trezor hasn't been updated?
You can connect you device to the trezor web wallet and check the firmware version you are using there. A new firmware was released a couple of days ago to make the way Trezor handles Segwit transactions safer, and I recall them saying that
We are providing a patch for Electrum as a pull request #6198. It will be impossible to use Electrum with Trezor 1.9.1 and 2.3.1 until this patch is released.
This however, should not affect older firmware versions (or so I believe).
I'm curious about something here too....
Set up electrum on a comp, swept the private key of a small paper wallet. No issues there, all as expected.
Waited for confirmations then tried to send the coin to a blockchain account. Asked to enter code and then got this message.
DataError: Native segwit is disabled
So you did go to Electrum, then swept the address by importing the private key, receiving address is supposed to be one inside the wallet if you don't change it, then clicked sweep and created a transaction? Because it's a bit unclear whether you get the error when you sweep from the paper wallet into Trezor(Electrum), or when you send from Electrum to blockchain.
Also, did you get a transaction ID before getting the error? And, where did you get the error? On Blockchain, or on Electrum?