Following Gabriel, for $\mathcal C$ a Grothendieck category, set $\mathcal T(\mathcal C)$ to be the localizing subcategory generated by the objects of finite length, and $\mathcal C' = \mathcal C / \mathcal T(\mathcal C)$ to be the localization thereat. This construction may be iterated: set $\mathcal C^{(0)} = \mathcal C$, $\mathcal C^{(\alpha+1)} = \mathcal C^{(\alpha)\prime}$ and at limit ordinals take intersections. By abstract nonsense this chain eventually stabilizes at some ordinal $\delta(\mathcal C)$, and $\mathcal C$ is said to be a Gabriel category if $\mathcal C^{(\delta(\mathcal C))} = 0$. The ordinal $\delta(\mathcal C)$ is called the Gabriel dimension of $\mathcal C$ (this term is usually reserved for the case when $\mathcal C$ is a Gabriel category, but let's agree to apply it even when $\mathcal C^{(\delta(\mathcal C))} \neq 0$).
Question: What is an example of a Grothendieck category which is not Gabriel?
Equivalently, by looking at the $\mathcal C^{(\delta(\mathcal C))}$, I’m looking for a nonzero Grothendieck category with no simple objects.
Gabriel shows that Gabriel categories are closed under localization at a localizing subcategory. So by the Gabriel-Popescu theorem, if there is a non-Gabriel category, then there is a non-Gabriel module category.
I have a proof that every locally finitely generated Grothendieck category (in particular, every module category and hence every Grothendieck category) is Gabriel but I don’t trust it. The proof proceeds by observing that finite length objects are always finitely generated and finitely generated Grothendieck categories are closed under localization at finitely generated objects and every nonzero finitely generated object in a Grothendieck category admits a simple quotient.