Nginx not showing 404 when attempting a nonexistent folder

When trying to visit a folder that doesn't exist (i.e. https://domain/nonexistent) it just loads the root index.php.

It does show 404 when attempting to load a specific file (https://domain/nonexistent/index.php).

Here's my vhost config:

server {
listen 80;
listen [::]:80;
listen 443 ssl http2;
listen [::]:443 ssl http2;
{{ssl_certificate_key}}
{{ssl_certificate}}
server_name (domain);
{{root}}
{{nginx_access_log}}
{{nginx_error_log}}
if ($bad_bot = 1) {
return 403;
}
if ($scheme != "https") {
rewrite ^ https://$host$uri permanent;
}
location ~ /.well-known {
auth_basic off;
allow all;
try_files $uri =404;
}
{{basic_auth}}
try_files $uri $uri/ /index.php?$args;
index index.php index.html;
location ~ \.php$ {
include fastcgi_params;
fastcgi_intercept_errors on;
fastcgi_index index.php;
fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
try_files $uri =404;
fastcgi_read_timeout 3600;
fastcgi_send_timeout 3600;
fastcgi_param HTTPS $fastcgi_https;
{{php_fpm_listener}}
{{php_settings}}
}
location ~* ^.+\.(css|js|jpg|jpeg|gif|png|ico|gz|svg|svgz|ttf|otf|woff|eot|mp4|ogg|ogv|webm|webp|zip|swf)$ {
add_header Access-Control-Allow-Origin "*";
expires max;
access_log off;
}
if (-f $request_filename) {
break;
}
}

I've attempted to find a solution but seems like my question is too specific.

What's missing is the =404 in:

try_files $uri $uri/ /index.php?$args;

Change to:

try_files $uri $uri/ /index.php?$args =404;

That fixed it.