Next.js 13: loading.js not working when put in SSR folders

Question

I've built a Next.JS app that has SSR user profiles and blog articles.

I'm having trouble getting the new Loading UI/loading.js from Next.js 13 to work.

File Structure

pages
├── profiles
│    └── [title].js
│    └── loading.js 
│       
│  
├── articles
│    └──[id].js
│    └──loading.js
│
│
├── index.js   
├── _app.js         

loading.js Code

export default function Loading() {
  return <p>Loading...</p>;
}

I confirmed that my next.js version in package.json is in fact "next": "13.0.7",

I've tried moving loading.js to the root pages directory, I've tried moving it into a component and then importing it into _app.js. None of this works.

Thank you in advance!