FetchXML Query is not working in liquid templates

Question

I have below fetchxml query that is running fine in Advanced Find / FetchXML Builder. However, in liquid templates, same query is returning nothing.

{% fetchxml feed %}
<fetch version="1.0" output-format="xml-platform" mapping="logical" distinct="false">
  <entity name="contact">
    <attribute name="fullname" />
    <attribute name="telephone1" />
    <attribute name="contactid" />
    <order attribute="fullname" descending="false" />
  </entity>
</fetch>
{% endfetchxml %}
{
    "results":[
        {% for item in feed.results.entities %}
        {
            "Id":"{{ item.ebecs_vatgroupid }}",
            "Name":"{{ item.ebecs_name }}"
        }{% unless forloop.last %},{% endunless %}
        {% endfor %}
    ]
}

I'm system admin and have due entity permissions as well as well web roles associated to my user. Can anyone please assist in this regard?

UPDATE Here is the output in the browser. It is returning liquid tags as is.