Dynamic nginx proxy 502 peer closed connection in SSL handshake

Question

does anyone know why am I getting this problem? Basically the connection closes by itself because of dynamic proxy_pass. This is my nginx config.

error from log :

2022/08/25 19:45:28 [error] 14208#0: *13 peer closed connection in SSL handshake (104: Connection reset by peer) while SSL handshaking to upstream, client:

  pcre_jit on;
worker_processes 8;

events {
worker_connections 8192;
  accept_mutex on;  
  #accept_mutex_delay 10ms;
  multi_accept on;
}

http {
  resolver 8.8.8.8 ipv6=off;

error_log  /var/log/nginx/nginx_error.log debug;
log_format custom '$remote_addr - $remote_user [$time_local] ';

include mime.types;
    default_type application/octet-stream;

 
server {
  listen 443 ssl http2;
  
  add_header Accept-Encoding "";
  proxy_set_header Accept-Encoding "";
  proxy_intercept_errors on;
  recursive_error_pages on;

  server_tokens off;

  ssl_protocols TLSv1.1 TLSv1.2 TLSv1.3;

  gzip off;
  location / {
  resolver 1.1.1.1 ipv6=off;

set_by_lua_block $ip {


      return '1.1.1.1'
} 


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 X-Forwarded-For $proxy_add_x_forwarded_for;
  proxy_set_header X-Forwarded-Proto $scheme;
  proxy_set_header X-Forwarded-Host $host;
  proxy_set_header X-Forwarded-Port $server_port;
  proxy_hide_header X-Powered-By;
  proxy_hide_header X-Nextjs-Cache;
  proxy_cache_key "$scheme$request_method$host$request_uri$is_args$args";
  proxy_cache_revalidate on;
  proxy_ssl_server_name on;
  sendfile on;
  tcp_nopush on;
  tcp_nodelay on;
  proxy_ssl_name $host;
  proxy_ssl_verify off;
  proxy_ssl_session_reuse on;
  add_header Strict-Transport-Security 'max-age=31536000; includeSubDomains; preload';
  add_header X-XSS-Protection "1; mode=block";
  add_header X-Frame-Options "SAMEORIGIN";
  add_header X-Content-Type-Options nosniff;
  add_header Referrer-Policy "strict-origin";
  add_header Access-Control-Allow-Origin *;
  add_header Content-Security-Policy upgrade-insecure-requests;
        
  proxy_pass https://$ip;

   ssl_certificate /var/www/nnn/cert.pem;
  ssl_certificate_key /var/www/nnn/cert.key;
  }


}