Source Maps not working with Webpack

I'm pretty new to webpack and having some trouble configuring it to produce the necessary source maps. In the devtools it says

Source Map detected

but it shows the bundle and not the original code:

Here is my webpack.config.js:

module.exports = {
  entry: [
    'webpack-dev-server/client?http://localhost:8080/',
    'webpack/hot/dev-server',
    "./src/index.js"
  ],
  output: {
    filename: 'bundle.js',
    path: '/',
  },
  debug: true,
  devtool: 'source-map',
  resolve: {
    extensions: ['', '.jsx', '.scss', '.js', '.json']
  },
  module: {
    loaders: [
      {
        test: /(\.js|\.jsx)$/,
        exclude: /node_modules/,
        loaders: ['react-hot','babel']
      },
      {
        test: /\.scss$/,
        exclude: /node_modules/,
        loaders: ["style", "css?sourceMap", "sass?sourceMap"]
      }
    ]
  },
  devServer: { hot: true },
  plugins: [ new webpack.HotModuleReplacementPlugin() ],
  inline: true,
  progress: true,
  colors: true
};

And here is my package.json:

{
  "name": "react-template",
  "version": "1.0.0",
  "main": "index.js",
  "scripts": {
    "dev:test": "./node_modules/.bin/webpack --config webpack.test.config.js",
    "test:bundle": "./node_modules/.bin/tape test/bundle.js",
    "dev:serve": "./node_modules/.bin/webpack-dev-server --config webpack.development.config.js"
  },
  "devDependencies": {
    "babel-loader": "^6.2.1",
    "babel-preset-es2015": "^6.3.13",
    "babel-preset-react": "^6.3.13",
    "babel-preset-stage-0": "^6.3.13",
    "css-loader": "^0.23.1",
    "node-sass": "^3.8.0",
    "on-build-webpack": "^0.1.0",
    "react": "^0.14.6",
    "react-dom": "^0.14.6",
    "react-hot-loader": "^1.3.0",
    "sass-loader": "^3.2.1",
    "style-loader": "^0.13.0",
    "tape": "^4.4.0",
    "webpack": "^1.12.12",
    "webpack-dev-server": "^1.14.1"
  }
}

I've tried multiple variations of the devtool option and read this, this and this but no luck.

Any help would be great!

In bundle.js you will see original transpiled webpack bundle - this is normal behaviour.

Open webpack:// and you will see your project files.