Preheat the oven to 350°F (175°C). Line a 9 x 5-inch loaf pan with parchment paper or lightly grease it with butter.
In a medium bowl, whisk together 1½ cups all-purpose flour, baking powder, and salt. Set aside.
In a separate large mixing bowl, combine the melted butter and granulated sugar.
Add the eggs, alcohol-free vanilla extract, fresh lemon zest, and lemon juice. Mix until smooth and well combined.
With the mixer running on low speed, gradually add the dry ingredients and milk in alternating additions. Start with some of the flour mixture, add some milk, then repeat until everything has been incorporated.
Stop mixing as soon as the batter is combined. Avoid overmixing, which can make the finished loaf dense.
If using fresh blueberries, rinse and gently pat them so they're still slightly moist. Place the berries in a small bowl and toss with 1 tablespoon of flour.
Gently fold the flour-coated blueberries into the batter by hand, taking care not to crush them.
Immediately transfer the batter to the prepared loaf pan and smooth the surface.
Bake the Lemon Blueberry Bread for 55–65 minutes, or until a toothpick inserted into the center comes out clean or with only a few moist crumbs.
Let the bread cool in the pan for approximately 30 minutes.
Carefully remove the loaf and transfer it to a wire cooling rack positioned over a baking sheet or parchment paper.
To prepare the glaze, whisk together the melted butter, powdered sugar, lemon juice, and alcohol-free vanilla until smooth.
Drizzle or pour the lemon glaze over the cooled loaf.
Let the glaze set for a few minutes before slicing and serving.