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@xenoblademaster13 the buffs given by each tier scale up, but this accessory isn't meant to completely carry you through the game. Also, depending on the tier of your accessory you might be dealing with sunlight weakness. While on the surface layer during daytime, all benefits granted by the vampiric blood accessory are halved. This effect persists until you craft the final ultimate blood version of the accessory with a moon stone. After traversing to the underground layer and below, you will receive the full benefits of the accessory regardless of time of day.
As it stands, something else must be messing with the lifesteal value that is assigned to the player. What is likely happening is that another mod item or buff that is enabled is setting the player's lifesteal value to -1, which is the only way I can imagine this being the case.