Configuration file for Pages projects does not support "observability"

I'm trying to get my worker project working with observability via the documentation

compatibility_date = "2024-11-12"

[observability]
enabled = true
head_sampling_rate = 1


I have the latest version of wrangler: 3.87.0

However I get this error: Configuration file for Pages projects does not support "observability"

I have checked node_modules/wrangler/config-schema.json and observability is in there, I have also tried closing and reopening the app as well as wiping out node_modules and installing again.
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