Omitting lang prefix breaks an app?

[niksimFS24]

Hello, so I followed the documentation and looks like having prefixes in my URLs works well, but if I omit the locale in the URL my app breaks and tries to redirect to 404 (also fails there as well). It's like next-int does not pick defaultLocale from the middleware config.

My middleware:

export default createMiddleware({
  // A list of all locales that are supported
  locales: LOCALES,

  // Used when no locale matches
  defaultLocale: 'de',
  localePrefix: 'never', // I also tried 'as-needed` and 'always'
});

Logging locale prop inside layout.tsx without the prefix it returns the route name for locale prop instead of a prop (should be a default one de I assume if prefix is missing?)

In my app directory everything (page, layout, not-found, error) is nested inside of [locale] folder only api folder is in the root of app.

Am I doing something wrong?

Thanks for help. :)