Use multiple server blocks in NGINX on same host and same port

I want to configure the server such that the root of the server serves some static files, which a specific endpoing, /nextcloud serves nextcloud on the same domain.

Here is my nginx.conf -

worker_processes  8;

events {
    worker_connections  1024;
}

http {
    include       mime.types;
    default_type  application/octet-stream;
    sendfile        on;
    keepalive_timeout  65;

    server {
        listen       80 http2;
        listen [::]:80 http2;
        server_name  localhost;
        root   /srv/http/;
        location / {
            index  index.html index.php;
            try_files $uri $uri/ =404;
            autoindex on;
        }
        error_page   500 502 503 504  /50x.html;
        location = /50x.html {
            root   /usr/share/nginx/html;
        }
    }
    include /etc/nginx/sites-enabled/*;
}

Here is my /etc/nginx/sites-enabled/nextcloud.conf

upstream php-handler {
    server unix:/run/nextcloud/nextcloud.sock;
}

server {
    listen 80;
    listen [::]:80;
    server_name nextcloud;

    root /usr/share/webapps/;

    location = /robots.txt {
        allow all;
        log_not_found off;
        access_log off;
    }

    location ^~ /.well-known {
        location = /.well-known/carddav { return 301 /nextcloud/remote.php/dav/; }
        location = /.well-known/caldav  { return 301 /nextcloud/remote.php/dav/; }

        location /.well-known/acme-challenge    { try_files $uri $uri/ =404; }
        location /.well-known/pki-validation    { try_files $uri $uri/ =404; }

        return 301 /nextcloud/index.php$request_uri;
    }

    location ^~ /nextcloud {
        client_max_body_size 512M;
        client_body_timeout 300s;
        fastcgi_buffers 64 4K;

        gzip on;
        gzip_vary on;
        gzip_comp_level 4;
        gzip_min_length 256;
        gzip_proxied expired no-cache no-store private no_last_modified no_etag auth;
        gzip_types application/atom+xml application/javascript application/json application/ld+json application/manifest+json application/rss+xml application/vnd.geo+json application/vnd.ms-fontobject application/wasm application/x-font-ttf application/x-web-app-manifest+json application/xhtml+xml application/xml font/opentype image/bmp image/svg+xml image/x-icon text/cache-manifest text/css text/plain text/vcard text/vnd.rim.location.xloc text/vtt text/x-component text/x-cross-domain-policy;

        add_header Referrer-Policy                      "no-referrer"   always;
        add_header X-Content-Type-Options               "nosniff"       always;
        add_header X-Download-Options                   "noopen"        always;
        add_header X-Frame-Options                      "SAMEORIGIN"    always;
        add_header X-Permitted-Cross-Domain-Policies    "none"          always;
        add_header X-Robots-Tag                         "none"          always;
        add_header X-XSS-Protection                     "1; mode=block" always;

        fastcgi_hide_header X-Powered-By;

        index index.php index.html /nextcloud/index.php$request_uri;

        location = /nextcloud {
            if ( $http_user_agent ~ ^DavClnt ) {
                return 302 /nextcloud/remote.php/webdav/$is_args$args;
            }
        }

        location ~ ^/nextcloud/(?:build|tests|config|lib|3rdparty|templates|data)(?:$|/)    { return 404; }
        location ~ ^/nextcloud/(?:\.|autotest|occ|issue|indie|db_|console)                  { return 404; }

        location ~ \.php(?:$|/) {
            rewrite ^/nextcloud/(?!index|remote|public|cron|core\/ajax\/update|status|ocs\/v[12]|updater\/.+|oc[ms]-provider\/.+|.+\/richdocumentscode\/proxy) /nextcloud/index.php$request_uri;

            fastcgi_split_path_info ^(.+?\.php)(/.*)$;
            set $path_info $fastcgi_path_info;

            try_files $fastcgi_script_name =404;

            include fastcgi_params;
            fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
            fastcgi_param PATH_INFO $path_info;

            fastcgi_param modHeadersAvailable true;         # Avoid sending the security headers twice
            fastcgi_param front_controller_active true;     # Enable pretty urls
            fastcgi_pass php-handler;

            fastcgi_intercept_errors on;
            fastcgi_request_buffering off;

            fastcgi_max_temp_file_size 0;
        }

        location ~ \.(?:css|js|svg|gif|png|jpg|ico|wasm|tflite)$ {
            try_files $uri /nextcloud/index.php$request_uri;
            expires 6M;         # Cache-Control policy borrowed from `.htaccess`
            access_log off;     # Optional: Don't log access to assets

            location ~ \.wasm$ {
                default_type application/wasm;
            }
        }

        location ~ \.woff2?$ {
            try_files $uri /nextcloud/index.php$request_uri;
            expires 7d;         # Cache-Control policy borrowed from `.htaccess`
            access_log off;     # Optional: Don't log access to assets
        }

        location /nextcloud/remote {
            return 301 /nextcloud/remote.php$request_uri;
        }

        location /nextcloud {
            try_files $uri $uri/ /nextcloud/index.php$request_uri;
        }
    }
}

The problem is this configuration doesn't work. With this config, I get a 404 when I try accessing /nextcloud/.

If I disable the static files server block in nginx.conf, I can access /nextcloud/ but then, I can't access my static files. How do I configure such that both work, on the same host and same port?