ReactNative not rendering spinner and rendering other unwanted loading component

I’m trying to do loading spinner using ActivityIndicator with ReactNative. I’ve mocked rest api to see if spinner works. The problem is, despite that I am using ActivityIndicator, I see component which I have not created, while isLoading is true.

Component I see instead has text ‘Loading…’ in top left corner.

loading component

Function which mocks endpoint with loading time:

async fetchFishDetails(fishId: number): Promise<ApiResponse<any>> {
        let fish: Fish | undefined
        let user: any | undefined

        fish = this.user1.fishes.find(fish => fish.id === fishId)
        user = this.user1
        if (fish === undefined) {
            fish = this.user2.fishes.find(fish => fish.id === fishId);
            user = this.user2
        }

        await new Promise(resolve => setTimeout(resolve, 1000))
        
        return {
            status: 200,
            body: {fishDetails: fish, user: user}
        }
    }

Function that handle response from function above:

export const getFishDetails = async (fishId: number): Promise<ServiceResponse<any>> => {
    console.debug('getFishDetails(), fishId=', fishId);

    try {
        const response = await fishRestApi.fetchFishDetails(fishId);
        
        if (response.status === 200) {
            return new ServiceResponse(Type.SUCCESS, response.body);
        } else {
            console.error('Error occurred fetching fish from backend')
            return new ServiceResponse(Type.FAIL, undefined);
        }
    } catch (error) {
        console.error('Error occurred getting fish, err=', error);
        return new ServiceResponse(Type.FAIL, undefined);
    }
};

Fetching data in component

    useEffect(() => {
        setIsLoading(true)
        console.log('start loading')
        getFishDetails(fishId)
            .then(response => {
                if (response.type === Type.SUCCESS) {
                    const {fishDetails, user} = response.body;
                    setFishDetails(fishDetails);
                    setUser(user);
                    setProfilePictureUri(user.picture ? {uri: user.picture} : require('../assets/user-default.png'));
                } else {
                    console.log('Failed to get fish details');
                }
            })
            .catch(err => {
                console.error('Error fetching fish details:', err);
            })
            .finally(() => {
                setIsLoading(false);
                console.log('loading ended')
            })

    }, [fishId]);

View that is returned

return (
        <ScrollView style={styles.container}>
            {isLoading ? (<View style={{flex: 1, justifyContent: 'center', alignItems: 'center'}}>
                <ActivityIndicator size="large" animating={true}/>
            </View>) : <View style={styles.content}> ....  </View>

Would be grateful for an explanation about this ‘Loading…’ component and for all other advices.

I’ve tried to search google and documentation about the component and couldn’t find anything.