What may be wrong with nginx?
It may help to say the operating environment and if this is a new installation or one that had been working properly and then not after an update or some other event.
It was working properly until I turned off DNS based multi tenancy and ran the nginx reload command
bench setup nginx could provide some info, if its a containerized install the machinectl command might be able to show something.
It’s not containerized, and bench setup nginx runs just fine
I presume the commands found here were used to set up multitenancy:
Is it possible to try the command(s) from the host or from a different ssh client?
Yes it’s possible, but how will it resolve that
The permissions and securetty messages are curious. You should be able to cat /etc/securetty and see something if running on a Ubuntu host, I wonder if its some sort of PAM problem.