nginx passenger standalone prevent proxy_pass on subdirectory

[Kuamanet]

i'm running nginx as reverse proxy for passenger standalone rails server. I need to set up root /location on passenger standalone port (5000) but few other subdirectories must be served by "pure" nginx. I'm trying configurations like

server {
    listen 443;

    root /path/to/rails/public;

    server_name example.com;

    ssl on;
    # ... some ssl config

    # this is used for passenger standalone on port 5000
    location / {
            proxy_pass https://127.0.0.1:5000;
            proxy_http_version 1.1;
            proxy_set_header Host $http_host;
            proxy_set_header Upgrade $http_upgrade;
            proxy_set_header Connection $connection_upgrade;
            proxy_buffering off;
    }

    # this is not passenger standalone! 
    location /subdir {
            proxy_pass https://127.0.0.1;
            auth_basic "Restricted access area authorization needed.";
            auth_basic_user_file /path/to/.htpasswd;
    }
}

but https://example.com/subdir/ return always 404 error. Any tips to fix it?

[Daniel Knoppel]

Your config works for me (/ goes to passenger, /subdir asks for authentication) so it must be something else that's wrong, maybe the server you're querying is not the one you think it is, or not using the config you showed here.

- Daniel