No, your edit still ignores something else: at the time you took out the loan, you already had a liability for those employee salaries of $1M, so the $1M valuation means that you had at least $2M in assets.

Acquiring the loan moves you up to $3M in assets (original assets, plus $1m cash from the loan) and $2M in liabilities (employee salaries + $1M loan)

When you pay those employee salaries, you wipe out the salary liability and the $1M cash asset from the loan. This leaves you the original $2M in assets, and the $1M loan, for a net valuation of...$1M.

Basically, the loan ends up replacing the salaries as a liability on your balance sheet.