Ew, I kinda don't like the lowkey infighting responses here...? I'll try to actually explain.
Tell me, slopes physics work (kinda), but not loops
The short answer: It simply hasn't been done. The engine can be something of a rat's nest, and few dare to provoke the hive.
The long answer: Getting something like loops to work on the SRB2 engine has been something of a herculean task due to the mere concept of "walking up a wall/ceiling" being a nightmare to implement for a engine originally made in 1992 (i.e. you'd have to check if Sonic's stuck on the slope not moving
Sonic 4 style, you'd have to check if he's going fast enough to go over the loop, you'd have to account for the player jumping off, you'd have to check if he's on the ceiling of the loop, etc). There's also the problem of sprites, which... I think people focus
way too much on (why do you think several mods back in the Climax Age had "SSN WAS HERE" as a placeholder?).
While in most other engine you can just have Sonic be able to continue running on the loop going in 3D circles and say "fuck you" to physics, the SRB2 engine (pictured right, doing what it knows best) is a lot more rigid with how it wants the player to jump and move around, especially in angles and slopes and is something of a parasite that leeches a bit too comfortably onto its host.
With the scary task of even adding slopes in the game not fully realized until way into the mid-2010s (thanks to a toxic cocktail of dev politics, crab buckets, and the tools and motivation just not being there), loops has been something of a collaborative and programming tough nut to crack for the SRB2 modders. I'm not even fully sure if there
have been more serious attempts outside of the classic "gravity switcheroo" and the Discord PoC!
Up until recently in the SRB2OS's #devetopment, it was very arresting on
how to even approach Sonic going in a loop (even in Sonic Adventure, loops were kinda just "there" with little how and say on how you wanted to go on it unless you wanted to be flung off). Slopes and ramps were half-easy in execution (if a little janky, looking at you SUGOI), but it's a whole another beast to get Sonic to just walk on walls. Do you just stick him in the ceiling, or do you somehow rotate the entire stage? Do you have him rigidly go in one circular spline, or do you have him move left to right Sonic Dash style? No one really knows!
But someday, there will be a brave soul who will dive deep into SRB2's Git and very gradually mine their way to making Sonic be able to fully function with loops, and it'll be optional and no one would have to destroy their hands and eyes having to draw Mario in a ungodly amount of angles. But I don't know when that day will come...