I'll fix that. I'll keep those two blocks separated.
However, see my previous question. The problem was resolved by rebooting the server. How come? I'm really interested in understanding why it worked after reboot, but not before.
I did restart nginx every time I changed the config tho.
There are many "reasons" things like that happen.
Most are when things have gone wrong and are not behaving as expected.
A reboot can set things back to how they should normally be working.