Ten years later I stumbled upon this problem as well. To share it with the community here is what I've researched so far.
The first hint I have found at the comment from user314104 to the question. You will see the Software Loopback Interface 1 for example from my MS Windows 10 with:
PS C:\Users\ingo\devel> route print
===========================================================================
Interface List
10...52 54 00 ab b0 be ......Realtek RTL8139C+ Fast Ethernet NIC
15...52 54 00 68 79 e4 ......Realtek RTL8139C+ Fast Ethernet NIC #2
1...........................Software Loopback Interface 1
===========================================================================
--- snip ---
You can also use:
PS C:\Users\ingo\devel> netsh interface ipv6 show address
Interface 1: Loopback Pseudo-Interface 1
Addr Type DAD State Valid Life Pref. Life Address
Other Preferred infinite infinite ::1
Interface 16: Ethernet 3
Addr Type DAD State Valid Life Pref. Life Address
Temporary Preferred 1h59m15s 29m14s 2003:d5:271e:5e00:d40a:76a1:d317:1765
Public Preferred 1h59m15s 29m14s 2003:d5:271e:5e00:d60a:bb7a:f796:590e
Other Preferred infinite infinite fe80::eaf7:6c1f:1223:97bb%16
or:
PS C:\Users\ingo\devel> netsh interface ipv4 show address
Configuration for interface "Ethernet 2"
DHCP enabled: Yes
IP Address: 192.168.24.122
Subnet Prefix: 192.168.24.0/24 (mask 255.255.255.0)
Default Gateway: 192.168.24.2
Gateway Metric: 0
InterfaceMetric: 25
Configuration for interface "Loopback Pseudo-Interface 1"
DHCP enabled: No
IP Address: 127.0.0.1
Subnet Prefix: 127.0.0.0/8 (mask 255.0.0.0)
InterfaceMetric: 75
I also find it if I query it with the GetAdaptersAddresses function. I don't know why Microsoft is hiding it when showing interfaces with ipconfig.
As mentioned at How do I change the IP address of loopback in Windows 10? you can just ping the loopback:
PS C:\Users\ingo\devel> ping -4 loopback
Pinging win10-devel.hoeft-online.de [127.0.0.1] with 32 bytes of data:
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Ping statistics for 127.0.0.1:
Packets: Sent = 4, Received = 4, Lost = 0 (0% loss),
Approximate round trip times in milli-seconds:
Minimum = 0ms, Maximum = 0ms, Average = 0ms
PS C:\Users\ingo\devel> ping -6 loopback
Pinging win10-devel.hoeft-online.de [::1] with 32 bytes of data:
Reply from ::1: time<1ms
Reply from ::1: time<1ms
Reply from ::1: time<1ms
Reply from ::1: time<1ms
Ping statistics for ::1:
Packets: Sent = 4, Received = 4, Lost = 0 (0% loss),
Approximate round trip times in milli-seconds:
Minimum = 0ms, Maximum = 0ms, Average = 0ms
To answer your question: Microsoft has implemented a loopback interface in Windows but hidding it for some reason. You should be able to use it for testing as usual.