Is Loss not a good indication of performance?

Im trying to segment 3D volumes using a 3D uNet network. Ive reached a stage where I am getting very good validation loss using CrossEntropy and BCE

idx:  0 of  53 - Validation Loss:  0.029650183394551277
idx:  5 of  53 - Validation Loss:  0.009899887256324291
idx:  10 of  53 - Validation Loss:  0.05049080401659012
idx:  15 of  53 - Validation Loss:  0.02019292116165161
idx:  20 of  53 - Validation Loss:  0.04724293574690819
idx:  25 of  53 - Validation Loss:  0.02810296043753624
idx:  30 of  53 - Validation Loss:  0.02642594277858734
idx:  35 of  53 - Validation Loss:  0.029894422739744186
idx:  40 of  53 - Validation Loss:  0.04158024489879608
idx:  45 of  53 - Validation Loss:  0.04574814811348915
idx:  50 of  53 - Validation Loss:  0.05406259000301361

I assumed my network is performing very well so i wrote a script to visualize my network outputs against their respective targets. What I get is something very different, not something that justifies this loss.
The samples are of depth 32 and I’ve outputted each z-plane as a single image.
Here is the target:

And the predicted output:

All samples are like this, not one of them accurately represent the target with the reported loss… so I ask is my loss wrong? What should I look into to fix this?

Thanks

What is loss function?
Loss function is very vital in learning.
Loss function should make intuitive sense of your end goal for learning.

Secondly, What is the scale for your loss?
check for how loss is decreasing. If it starts from lower value and decreases slowly, then probably your network is not yet learning.

I would suggest following-

  1. Validate loss function and verify if it is designed to do what you expect
  2. Plot the loss and validate if it is decreasing and how fast