.well-known/acme-challenge/xxxx gives 404 nginx - nginx

Question

I manage a wordpress site.
I have below code block in my nginx config file.
server {
listen 443 ssl;
server_name example.com;
client_max_body_size 1000M;
root /var/www/wordpress;
index index.php index.html index.htm;
ssl_certificate /etc/letsencrypt/live/example.com/fullchain.pem; # managed by Certbot
ssl_certificate_key /etc/letsencrypt/live/example.com/privkey.pem; # managed by Certbot
proxy_read_timeout 3000;
proxy_connect_timeout 3000;
proxy_send_timeout 3000;
expires 1s;
set $skip_cache 0;
# POST requests and URLs with a query string should always go to PHP
if ($request_method = POST) {
set $skip_cache 1;
}
if ($query_string != "") {
set $skip_cache 1;
}
# Don't cache URIs containing the following segments
if ($request_uri ~* "/wp-admin/|/xmlrpc.php|wp-.*.php|/feed/|index.php
|sitemap(_index)?.xml") {
set $skip_cache 1;
}
# Don't use the cache for logged-in users or recent commenters
if ($http_cookie ~* "comment_author|wordpress_[a-f0-9]+|wp-postpass
|wordpress_no_cache|wordpress_logged_in") {
set $skip_cache 1;
}
location / {
autoindex on;
client_max_body_size 1000M;
try_files $uri $uri/ /index.php$is_args$args;
}
location = /favicon.ico { log_not_found off; access_log off; }
location = /robots.txt { log_not_found off; access_log off; allow all; }
location ~* \.(css|gif|ico|jpeg|jpg|js|png)$ {
expires 1s;
log_not_found off;
}
location ~ \.php$ {
try_files $uri =404;
fastcgi_split_path_info ^(.+\.php)(/.+)$;
fastcgi_pass unix:/var/run/php/php7.4-fpm.sock;
fastcgi_index index.php;
include fastcgi_params;
fastcgi_cache_bypass $skip_cache;
fastcgi_no_cache $skip_cache;
fastcgi_cache WORDPRESS;
fastcgi_cache_valid 60m;
fastcgi_cache_lock on;
expires 1s;
add_header X-FastCGI-Cache $upstream_cache_status;
}
location ~ /.well-known {
allow all;
}
location ^~ /.well-known/acme-challenge/ {
allow all;
default_type "text/plain";
try_files $uri =404;
}
}
I created test file in /var/www/wordpress/.well-known/acme-challenge/ folder.
when I load https://example.com/.well-known/acme-challenge it gives me nice 404 from wordpress.
when I load https://example.com/.well-known/acme-challenge/ it gives me below error
404 Not Found
nginx/1.14.0 (Ubuntu)
when I try to load https://example.com/.well-known/acme-challenge/test also it gives me. below 404 error.
404 Not Found
nginx/1.14.0 (Ubuntu)
Because of this my ssl renew fails.
What am I missing here ?