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Hey @rmehi, if WPGraphQL is working fine with Vercel, it seems like there could be an issue with the server config on your droplet. I would encourage you to reach out to DigitalOcean support.
Another option could be to use a managed WordPress host that is already known to work well with WPGraphQL.
Feel free to open up another issue if you find any specific issues with the plugin itself. Thank you!