Webdav complains remote error: tls: illegal parameter

OK I've found the solution. The problem was with nginx.
TL;DR:
Just add default_server to the listen directive of nginx config.
So it should look like this:

listen 443 default_server ssl;

I was at my wit's end until I came across with this post.
Not sure about the side-effects as I'm not that familiar with nginx either.
It's pretty strange everything worked just fine few months ago.

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