Thanks... but after verifying no, nothing to do with punycode and nginx. For months I've been running my nip5 as a serverless cloudflare worker and it stopped working... yesterday updated everything and restarted and it worked for a few hours... and then broke again...
So I double checked nginx and everything and everything is... as it should be...
Got a funny feeling it's something to do with cloudflare's new paid workers plan. Maybe I was using something that needs the new paid plan.... next step to debug after I grab some breakfast!
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