A while loop iterates once everything in the loop has completed. The event structure has a timeout (little blue box in the upper left corner of the structure) that defaults to -1 which is no timeout. So what is going on is the while loop is entered, the input path control is written to the output path indicator, and the event structure waits for something to happen. And waits. And waits. And waits. The while loop never iterates as the first iteration hasn't completed yet.
With the probe, unless you have "Retain Wire Values" selected (icon up in the button bar of the block diagram) then the probe can be misleading. If you don't have it selected, the "not executed" really means not-executed-since-you-created-the-probe. Turning on "Retain Wire Values" before you run a VI changes that to a literal meaning.