Why are you using that?

    location ~ /\.ht {
        deny all;
    }

You’re denying the access to your root, which is the public/ folder and has the file .htaccess that has

<IfModule mod_rewrite.c>
    <IfModule mod_negotiation.c>
        Options -MultiViews -Indexes
    </IfModule>

    RewriteEngine On

    # Handle Authorization Header
    RewriteCond %{HTTP:Authorization} .
    RewriteRule .* - [E=HTTP_AUTHORIZATION:%{HTTP:Authorization}]

    # Redirect Trailing Slashes If Not A Folder...
    RewriteCond %{REQUEST_FILENAME} !-d
    RewriteCond %{REQUEST_URI} (.+)/$
    RewriteRule ^ %1 [L,R=301]

    # Send Requests To Front Controller...
    RewriteCond %{REQUEST_FILENAME} !-d
    RewriteCond %{REQUEST_FILENAME} !-f
    RewriteRule ^ index.php [L]
</IfModule>

This file handles the income requests and send to the front controller.