app-router: update prefetch heuristic to traverse until until we hit a loading boundary

packages/next/src/server/app-render/app-render.tsx

@@ -752,6 +752,8 @@ export async function renderToHTMLOrFlight(
             const childSegment = parallelRoute[0]
             const childSegmentParam = getDynamicParamFromSegment(childSegment)
 
+            // if we're prefetching and that there's a Loading component, we bail out
+            // otherwise we keep rendering for the prefetch
             if (isPrefetch && Loading) {
               const childProp: ChildProp = {
                 // Null indicates the tree is not fully rendered
@@ -1025,48 +1027,42 @@ export async function renderToHTMLOrFlight(
                 getDynamicParamFromSegment,
                 query
               ),
-              // Check if one level down from the common layout has a loading component. If it doesn't only provide the router state as part of the Flight data.
-              isPrefetch && !Boolean(components.loading)
-                ? null
-                : // Create component tree using the slice of the loaderTree
-                  // @ts-expect-error TODO-APP: fix async component type
-                  React.createElement(async () => {
-                    const { Component } = await createComponentTree(
-                      // This ensures flightRouterPath is valid and filters down the tree
-                      {
-                        createSegmentPath,
-                        loaderTree: loaderTreeToFilter,
-                        parentParams: currentParams,
-                        firstItem: isFirst,
-                        injectedCSS,
-                        injectedFontPreloadTags,
-                        // This is intentionally not "rootLayoutIncludedAtThisLevelOrAbove" as createComponentTree starts at the current level and does a check for "rootLayoutAtThisLevel" too.
-                        rootLayoutIncluded,
-                        asNotFound,
-                      }
-                    )
-
-                    return <Component />
-                  }),
-              isPrefetch && !Boolean(components.loading)
-                ? null
-                : (() => {
-                    const { layoutOrPagePath } =
-                      parseLoaderTree(loaderTreeToFilter)
-
-                    const styles = getLayerAssets({
-                      layoutOrPagePath,
-                      injectedCSS: new Set(injectedCSS),
-                      injectedFontPreloadTags: new Set(injectedFontPreloadTags),
-                    })
-
-                    return (
-                      <>
-                        {styles}
-                        {rscPayloadHead}
-                      </>
-                    )
-                  })(),
+              // Create component tree using the slice of the loaderTree
+              // @ts-expect-error TODO-APP: fix async component type
+              React.createElement(async () => {
+                const { Component } = await createComponentTree(
+                  // This ensures flightRouterPath is valid and filters down the tree
+                  {
+                    createSegmentPath,
+                    loaderTree: loaderTreeToFilter,
+                    parentParams: currentParams,
+                    firstItem: isFirst,
+                    injectedCSS,
+                    injectedFontPreloadTags,
+                    // This is intentionally not "rootLayoutIncludedAtThisLevelOrAbove" as createComponentTree starts at the current level and does a check for "rootLayoutAtThisLevel" too.
+                    rootLayoutIncluded,
+                    asNotFound,
+                  }
+                )
+
+                return <Component />
+              }),
+              (() => {
+                const { layoutOrPagePath } = parseLoaderTree(loaderTreeToFilter)
+
+                const styles = getLayerAssets({
+                  layoutOrPagePath,
+                  injectedCSS: new Set(injectedCSS),
+                  injectedFontPreloadTags: new Set(injectedFontPreloadTags),
+                })
+
+                return (
+                  <>
+                    {styles}
+                    {rscPayloadHead}
+                  </>
+                )
+              })(),
             ],
           ]
         }