Nginx and WebSocket Unexpected server response: 400

Question

I'm trying to deploy a NodeJS websocket server to my Cent OS machine which running Nginx, I'm trying to make socket.mydomain.com for the socket and I used the following configuration for nginx

map $http_upgrade $connection_upgrade {
    default upgrade;
    ''      close;
}

server {
    listen ip:80;
    server_tokens off;
    server_name socket.mydomain.com;

    add_header X-XSS-Protection "1; mode=block";
    add_header X-Content-Type-Options "nosniff";

    index index.html index.htm index.php;

    charset utf-8;

    location / {
        proxy_http_version 1.1;
        proxy_pass             http://127.0.0.1:6001;
        proxy_read_timeout     60;
        proxy_connect_timeout  60;
        proxy_redirect         off;

        proxy_set_header Upgrade $http_upgrade;
        proxy_set_header Connection $connection_upgrade;
        proxy_set_header Host $host;
        proxy_cache_bypass $http_upgrade;
    }
}

When I try to connect using the server IP it works fine, but when I try to use the domain I got Connection Failed: Unexpected server response: 400
and the nginx access logs also says 400

41.69.136.9 - - [26/Oct/2022:13:50:23 +0200] "GET /app/A%D*G-Ka?protocol=7 HTTP/1.1" 400 157 "-" "-"
41.69.136.9 - - [26/Oct/2022:13:51:59 +0200] "GET /app/A%D*G-Ka?protocol=7 HTTP/1.1" 400 157 "-" "-"
41.69.136.9 - - [26/Oct/2022:13:52:01 +0200] "GET /app/A%D*G-Ka?protocol=7 HTTP/1.1" 400 157 "-" "-"

I think there's something with nginx cuz when I try to use the IP direct it works