Loop block failing on JSON array from Data Action

I’m trying to iterate over a JSON array returned from a Data Action using the Loop block. The response is valid JSON, but the loop never executes. Here is the payload structure:

{
 "results": [
 {"id": 1, "name": "Test"}
 ]
}

I set the loop source to data.results and the iterator to item. The debug log shows the array is populated, yet it skips straight to the next node. Am I missing a step to parse the JSON before the loop?