Problem when the site is in subdirectory + nginx

Hi

I have setup the site in a subdirectory https://example.com/blog. I have this settings in nginx:

location /blog {
    alias /var/www/html/blog;
    try_files $uri $uri/ @blog;
    
    include /var/www/html/blog/nginx.conf;
    
    ...
}
location @blog {
    rewrite /blog/(.*)$ /blog/index.php?/$1 last;
}

When I enabled minification, whole site broke.

I checked the nginx.conf file generated by the plugin and I see that it has prefixed the locations with /blog which doesn’t make sense because the file is included in a /blog nginx location.