*1539 768 worker_connections are not enough while connecting to upstream - ruby

Question

Deployed ruby backend api project to digitalocean server, i'm having issues configuring nagix and passenger
when I make this api call "http://159.65.65.203/api/v1/items" using postman i get this error
based on cat /var/log/nginx/error.log
2020/07/08 02:59:11 [alert] 2769#2769: *1539 768 worker_connections are not enough while
connecting to upstream, client: 159.65.65.203, server: borroup.com, request: "GET
/api/v1/items HTTP/1.0", upstream: "http://159.65.65.203:80/api/v1/items", host:
"159.65.65.203"
when i visit http://159.65.65.203/ i get this error
404 Not Found
nginx/1.18.0
using Ubuntu 16.04.6 (LTS) x64 ruby 2.4.1
here is sudo nano /etc/nginx/sites-available/default
upstream app {
server 159.65.65.203:80 fail_timeout=0;
}
# Default server configuration
server {
listen 80;
server_name borroup.com;
allow 159.65.65.203;
# this is where my react-app is located
root /var/www/development/ram/public/;
index index.html index.htm;
# Serve the static content (React app)
location / {
try_files $uri /index.html =404;
}
location /api {
# Insert your public app path
root /your/rails-app/path/public;
proxy_pass http://app;
proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
proxy_set_header Host $http_host;
proxy_redirect off;
}
error_page 500 502 503 504 /500.html;
client_max_body_size 4G;
keepalive_timeout 10;
}
here is sudo nano /etc/nginx/nginx.conf
user deploy;
worker_processes auto;
pid /run/nginx.pid;
events {
worker_connections 768;
}
http {
sendfile on;
tcp_nopush on;
tcp_nodelay on;
keepalive_timeout 65;
types_hash_max_size 2048;
include /etc/nginx/mime.types;
default_type application/octet-stream;
ssl_protocols TLSv1 TLSv1.1 TLSv1.2 TLSv1.3; # Dropping SSLv3, ref: POODLE
ssl_prefer_server_ciphers on;
access_log /var/log/nginx/access.log;
gzip on;
include /etc/nginx/conf.d/*.conf;
include /etc/nginx/sites-enabled/*;
}
here is netstat -plunta
Proto Recv-Q Send-Q Local Address Foreign Address State PID/Program
name
tcp 0 0 0.0.0.0:80 0.0.0.0:* LISTEN 2769/nginx:
worker
tcp 0 0 0.0.0.0:22 0.0.0.0:* LISTEN -
tcp 0 0 127.0.0.1:5432 0.0.0.0:* LISTEN -
tcp 0 976 159.65.65.203:22 222.186.30.167:11710 ESTABLISHED -
tcp 0 0 159.65.65.203:22 70.176.141.88:54472 ESTABLISHED -
tcp 0 604 159.65.65.203:22 184.101.50.220:55467 ESTABLISHED -
tcp6 0 0 :::22 :::* LISTEN -
udp 0 0 127.0.0.1:37075 127.0.0.1:37075 ESTABLISHED -
every time i change port i get similar but different wording errors
Note: This is a backend project does not have front end just used for api's