Nginx Reverse proxy acme challenge 404 error

I have a vhost which seems to work fine except when trying to generate SSL keep getting errors. Can some one help me to spot what is going wrong please? Thanks

    example.com: Domain could not be validated, error message: error type: urn:ietf:params:acme:error:unauthorized, error detail:
192.168.9.123: Invalid response from https://example.com/.well-known/acme-challenge/NOHITCjOoL1lpdh-Oh1pHUSnXvkSk00ksjBeVCWA2cY: 404

nginx vhost config:

upstream domain-default {
  zone domain-default 64k;
  server 172.31.7.1:9001;
  keepalive 2;
}

upstream domain-ws {
  zone domain-ws 64k;
  server 172.31.7.1:3012;
  keepalive 2;
}

# Redirect HTTP to HTTPS
server {
    listen 80;
    listen [::]:80;
    server_name example.com;
   return 301 https://$host$request_uri;
    {{root}}
    
location ~ /.well-known {
    allow all;
    {{root}}
  }

}


server {
    listen 443 ssl http2;
    listen [::]:443 ssl http2;
    server_name example.com;


    if ($scheme != "https") {
    rewrite ^ https://$host$uri permanent;
    }
 
  {{ssl_certificate_key}}
  {{ssl_certificate}}
  
    client_max_body_size 128M;

    location / {
  proxy_http_version 1.1;
  proxy_set_header "Connection" "";
  proxy_set_header Host $host;
  proxy_set_header X-Real-IP $remote_addr;
  proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
  proxy_set_header X-Forwarded-Proto $scheme;
  proxy_pass http://domain-default;
    }

    location /notifications/hub/negotiate {
  proxy_http_version 1.1;
  proxy_set_header "Connection" "";
  proxy_set_header Host $host;
  proxy_set_header X-Real-IP $remote_addr;
  proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
  proxy_set_header X-Forwarded-Proto $scheme;
  proxy_pass http://domain-default;
    }

    location /notifications/hub {
  proxy_http_version 1.1;
  proxy_set_header Upgrade $http_upgrade;
  proxy_set_header Connection "upgrade";
  proxy_set_header Host $host;
  proxy_set_header X-Real-IP $remote_addr;
  proxy_set_header Forwarded $remote_addr;
  proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
  proxy_set_header X-Forwarded-Proto $scheme;
  proxy_pass http://domain-ws;
    }

    
    location ~ /.well-known {
    allow all;
  }

}

The Error itself Says example.com Domain cannot be verified, you have to replace example.com with your domain. Don't forget to Point the IP address of the server to the domain name, it will be done.