The Query Loop block can exist in two different modes:

1. Default: Inheriting from the Global template
2. Custom: Allowing the user to define the Post Type etc. manually.

This works great in the context of editing a Template. But when you insert a Query block inside content and leave the settings on "Default" it shows you a list of posts in the editor. But on the frontend it never displays anything because there is no global query to inherit from.

Proposed Solution

When there is no global query to inherit from the "Default" settings should display X (global posts per page setting) posts of the default posts post type.