Use two domains on single droplet on website developed with nuxt.js

I have two domains and I want to run them on single droplet. I have many other websites and I think the issue is with nginx sites-available vim default file. I already have uploaded two folders inside /var/www/domain1/html… and another /var/www/domain2/html/… I have already run npm run build and everything works fine and I believe that the issue is with nginx sites-available vim default file.

My sites-available default file:

server {
        listen 80;
        server_name domain1.com;

root /var/www/domain1/html/domain1.com/;

        location / {
                proxy_pass http://127.0.0.1:8080;
                proxy_http_version 1.1;
                proxy_set_header Upgrade $http_upgrade;
                proxy_set_header Connection 'upgrade';
                proxy_set_header Host $host;
                proxy_cache_bypass $http_upgrade;
        }
}
server {
        listen 80;
        server_name domain2.co.in;
root /var/www/domain2/html/domain2.co.in/;
        location / {
        proxy_pass http://127.0.0.1:3000;
        proxy_http_version 1.1;
        proxy_set_header Upgrade $http_upgrade;
        proxy_set_header Connection 'upgrade';
        proxy_set_header Host $host;
        proxy_cache_bypass $http_upgrade;
        }
}

When i open my domains, on both domains nginx shows # 502 Bad Gateway.