I am trying to reverse proxy through nginx to react application and node js server. I am getting websocket error for the client side. Any solution?

Question

I am running my nginx in 443 ssl default port. I have added on custom domain 'localdev.xyz' in server name. I have also added it to host of windows system32 driver directory. I am trying to reverse proxy from https://localdev.xyz/ to localhost:3005(react app) and https://locldev.xyz/api to localhost:5000/api. I have not added websocket(socket.io or socket-io.client). It is a simple create react app frontend app and simple express server which is listening on port 5000(backend).

MY server side code looks like this:

const express = require("express");
const cors = require("cors");
const app = express();

app.use(cors({ origin: "https://localdev.xyz/", credentials: true }));

app.get("/api", (req, res) => {
  console.log(`request from ${req.ip}`);
  res.send("Ok from server");
});

app.get("/api/test", (req, res) => {
  console.log(`request from ${req.ip}`);
  res.send({ message: "Hello World" });
});

app.listen(5000, () => {
  console.log("server is listening on port http://localhost:5000");
});

My client side (react app) looks like this:

import "./App.css";

function App() {
  const handleClick = async () => {
    try {
      const fetchRes = await fetch("https://localdev.xyz/api/test");
      const res = await fetchRes.json();
      console.log(res);
    } catch (error) {
      console.log(error);
    }
  };
  return (
    <div className="App">
      <button onClick={handleClick}>Hello Server</button>
    </div>
  );
}

export default App;

My nginx.conf looks like this

#user  nobody;
worker_processes  1;

#error_log  logs/error.log;
#error_log  logs/error.log  notice;
#error_log  logs/error.log  info;

#pid        logs/nginx.pid;


events {
    worker_connections  1024;
}


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

    #log_format  main  '$remote_addr - $remote_user [$time_local] "$request" '
    #                  '$status $body_bytes_sent "$http_referer" '
    #                  '"$http_user_agent" "$http_x_forwarded_for"';

    #access_log  logs/access.log  main;

    sendfile        on;
    tcp_nopush      on;
    # tcp_noreply     on;

    #keepalive_timeout  0;
    keepalive_timeout  65;

    #gzip  on;

    server {
        listen       80;
        server_name  localhost;

        #charset koi8-r;

        #access_log  logs/host.access.log  main;

        location / {
            root   html;
            index  index.html index.htm;
        }

        #error_page  404              /404.html;

        # redirect server error pages to the static page /50x.html
        #
        error_page   500 502 503 504  /50x.html;
        location = /50x.html {
            root   html;
        }

        # proxy the PHP scripts to Apache listening on 127.0.0.1:80
        #
        #location ~ \.php$ {
        #    proxy_pass   http://127.0.0.1;
        #}

        # pass the PHP scripts to FastCGI server listening on 127.0.0.1:9000
        #
        #location ~ \.php$ {
        #    root           html;
        #    fastcgi_pass   127.0.0.1:9000;
        #    fastcgi_index  index.php;
        #    fastcgi_param  SCRIPT_FILENAME  /scripts$fastcgi_script_name;
        #    include        fastcgi_params;
        #}

        # deny access to .htaccess files, if Apache's document root
        # concurs with nginx's one
        #
        #location ~ /\.ht {
        #    deny  all;
        #}
    }


    # another virtual host using mix of IP-, name-, and port-based configuration
    #
    #server {
    #    listen       8000;
    #    listen       somename:8080;
    #    server_name  somename  alias  another.alias;

    #    location / {
    #        root   html;
    #        index  index.html index.htm;
    #    }
    #}


    # HTTPS server
    #
    #server {
    #    listen       443 ssl;
    #    server_name  localhost;

    #    ssl_certificate      cert.pem;
    #    ssl_certificate_key  cert.key;

    #    ssl_session_cache    shared:SSL:1m;
    #    ssl_session_timeout  5m;

    #    ssl_ciphers  HIGH:!aNULL:!MD5;
    #    ssl_prefer_server_ciphers  on;

    #    location / {
    #        root   html;
    #        index  index.html index.htm;
    #    }
    #}
    server {
       listen       443 ssl;
       server_name  localdev.xyz www.localdev.xyz;

       ssl_certificate      D:/codes/ssl_certificate/localdev.xyz/localdev.xyz.pem;
       ssl_certificate_key  D:/codes/ssl_certificate/localdev.xyz/localdev.xyz-key.pem;

       ssl_session_cache    shared:SSL:1m;
       ssl_session_timeout  5m;

       ssl_ciphers  HIGH:!aNULL:!MD5;
       ssl_prefer_server_ciphers  on;
       
       location / {
           proxy_pass   http://127.0.0.1:3005;
       }

       location /api {
           proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
           proxy_set_header Host $host;
           
           proxy_pass   http://127.0.0.1:5000/api;
           
           # enable WebSockets
           proxy_http_version 1.1;
           proxy_set_header Upgrade $http_upgrade;
           proxy_set_header Connection "upgrade";
       }
    }
}

This is the error log: enter image description here

What is the solution for this?