The clip you have created is not a loop yet.
Go to the track view. Note the corners of the clip are square.
You may want to turn on Snap to Grid to be sure the selected clip lines up with your measures.
Right click on the clip, and click "Enable Groove Clip Looping". You now have a loop, and as a visual cue, the corners are clipped.
Now you can drag out the right edge of the loop per the instructions.