Varnish responds with Transfer-Encoding: chunked for ESIed pages, but this does not work for some proxies(squid). I want to disable transfer-encoding for ESI.
The use of chunked encoding is a requirement for Varnish ESI.
Each ESI fragment will be a fresh chunk, that way Varnish doesn't have to buffer anything to build the page.
There are loads and loads of big web pages that use ESI with Varnish. Are you sure the proxy argument is valid?