Do you have any filter attached to that route ?
What happens if you enter the URL in the browser ( 'http://localhost/packages') ?
Have you removed the the packages folder from your public (or public_html) folder? I have seen the redirect loop happen with something similar when a route and the same directory exist.
Thanks Kreitje. That was the problem. Now I feel stupid how can I not see it being there. It was the packages folder and a named route packages that was messing it up.
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