No, 127.0.0.1 should never appear on any network, and no network device should ever route it.
The earliest documentation I was able to find is in RFC 1122 [1] from 1989, but according to RFC 6890 [2], the principle dates back to 1981.
[1] https://tools.ietf.org/html/rfc1122#section-3.2.1.3
[2] https://tools.ietf.org/html/rfc6890 (table 4)