MySQL one file per table not working

I've followed all of the instructions for enabling the one file per table in MySQL (v8, on Ubuntu 20): - Added innodb_file_per_table=ON - Restarted MySQL - Dumped all databases, one by one. However, when I import the databases back, everything is written to ibdata1 file. But, When I create a brand new DB via MySQL Client, and add a random table to it, the data is written to its own folder + table.ibd file. Any idea what I could be doing wrong? Few troubleshooting steps I tried: - Reboot - show variables like 'innodb_file_per_table'; (Value = ON)