Hi there,
Is there a reason you aren’t using Ghost-CLI? It would sort this configuration out for you automatically.
The tutorial you followed doesn’t have the trailing slash for the location match.
In the templates used by Ghost-CLI (which you can find in the repo via the cli docs the location is specified exactly rather than using the caret-tilde match:
location /blog/ {
// config here
}
Not 100% sure if this is the cause though - it could be some other part of the file is causing a conflict.