debian nginx and REST API 404 not found issue

I have a fresh Debian 12.7 install with nginx and wordpress on it.
All works well but the Rest Api which fails with 404 error.
Permalinks generation does not help.
This is testing vm so no firewall.

All php modules installed:
php-cli
php-common
php-pear
php-xml
php8.2
php8.2-cli
php8.2-common
php8.2-curl
php8.2-fpm
php8.2-gd
php8.2-imagick
php8.2-intl
php8.2-mbstring
php8.2-mysql
php8.2-opcache
php8.2-readline
php8.2-xml
php8.2-zip

Permissions on the /var/www/html: 755
Ownership of the /var/www/html: www-data:www-data

What am I missing?

 

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