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You should check any firewall or network routing gear. It looks like something is rejecting ACME Challenge requests with an HTTP 502 error. We see something similar with people using Palo Alto brand firewalls with certain settings. This does not look exactly like what we see with Palo Alto but it is similar.
# A reasonable 301 response
curl -I4 http://schemefusion.com/.well-known/acme-challeng
HTTP/1.1 301 Moved Permanently
Server: nginx/1.24.0
Location: https://schemefusion.com/.well-known/acme-challeng
# But a 502 when using the full challenge path
curl -I4 http://schemefusion.com/.well-known/acme-challenge
HTTP/1.1 502 Bad Gateway
Server: nginx/1.24.0
# An actual challenge will also include a challenge token
# Test404 is not valid but should get a 404 Not Found response not 502
curl -I4 http://schemefusion.com/.well-known/acme-challenge/Test404
HTTP/1.1 502 Bad Gateway
Server: nginx/1.24.0
Update: Above used your IPv4 address. I got the same results with your IPv6 address
Another option that you may have a backend system to answer the ACME challenges. If this is the case then the backend seems to be unreachable. You may want to check your nginx configuration where are the challenges reverse-proxied?
I am trying to set up a temporary proxy server to respond to the challenge. This worked in the past. The server should accept certs at /var/www/letsencrypt as in the script above
No. ping 127.0.0.1:8000 gives me "Name or service not known"