nginx – proxy_pass /subfolder – destination files 404'ing. Rewrite rule required?

I have two servers running nginx:

Server 1 has a range of projects on it Server 2 has a new Vue/Nuxtjs (node)

On server 1 I have set up a proxy_pass to the static IP of server 2 where my node based app is running. So the goal is for users to just see http://domain.tld/folder, http://domain.tld/folder/login etc when they browse the site

Server 1:

location /folder/ { 
  proxy_pass http://200.1.1.1/; // IP of server 2
}

Server 2:

location / {
  proxy_pass http://localhost:3000;
}

This works partly but all assets are 404. And when clicking links the browser visits http://domain.tld/login