Challenge 1: Why the Proxy Headers Live in the Outer server Block — Solution Walkthrough Why this placement is deliberate: Per Chapter 6's own warning box, if a nested location block sets even one proxy_set_header of its own, it stops inheriting ALL proxy_set_header directives from the parent context — not just the one it overrides. Placing X-Forwarded-For, X-Forwarded-Proto, and X-Real-IP in the outer server {} block, and never setting any proxy_set_header directly inside the /api/ location block itself, means /api/ automatically inherits all three headers without needing to repeat them. What would go wrong with the alternative: If these three headers had instead been set inside the /api/ location block itself, and any future location block were added elsewhere in the same server without also repeating them, that new location would silently receive none of these forwarded headers at all — exactly the gotcha Chapter 6 warned about. Keeping them in the outer block avoids this risk entirely for every current and future location nested inside this server, as long as none of those locations add their own proxy_set_header without also repeating the parent's headers. WHY THIS WORKS AS AN ANSWER ------------------------------ This exercise checks that the capstone's own specific structural choice is recognized as a direct, deliberate application of Chapter 6's own inheritance gotcha, not an arbitrary organizational preference.