Nginx location directive doesn't seem to be working in my system

Question

I am using fedora 37 and trying to create proxy server for my application. I am using Nginx for this. but directive not working i think.

Here's my nginx.conf file

user nginx;
worker_processes auto;
error_log /var/log/nginx/error.log notice;
pid /run/nginx.pid;

include /usr/share/nginx/modules/*.conf;

events {
    worker_connections 1024;
}

http {
    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  /var/log/nginx/access.log  main;

    sendfile            on;
    tcp_nopush          on;
    keepalive_timeout   65;
    types_hash_max_size 4096;

    include             /etc/nginx/mime.types;
    default_type        application/octet-stream;
    include /etc/nginx/conf.d/*.conf;

    server {
        listen       80;
        listen       [::]:80;
        server_name  myapi.com;
        # root         /usr/share/nginx/html;

        include /etc/nginx/default.d/*.conf;

        error_page 404 /404.html;
        location / {
            proxy_pass http://127.0.0.1:3000;
        }

        location /api/ {
            proxy_pass http://127.0.0.1:3000/api/0/;
        }

        error_page 500 502 503 504 /50x.html;
        location = /50x.html {
        }
    }

# Settings for a TLS enabled server.
#
#    server {
#        listen       443 ssl http2;
#        listen       [::]:443 ssl http2;
#        server_name  _;
#        root         /usr/share/nginx/html;
#
#        ssl_certificate "/etc/pki/nginx/server.crt";
#        ssl_certificate_key "/etc/pki/nginx/private/server.key";
#        ssl_session_cache shared:SSL:1m;
#        ssl_session_timeout  10m;
#        ssl_ciphers PROFILE=SYSTEM;
#        ssl_prefer_server_ciphers on;
#
#        # Load configuration files for the default server block.
#        include /etc/nginx/default.d/*.conf;
#
#        error_page 404 /404.html;
#        location = /404.html {
#        }
#
#        error_page 500 502 503 504 /50x.html;
#        location = /50x.html {
#        }
#    }

}

In the browser i am hitting localhost/api/ and 404 error showing up in the page.