Conditional set up of a proxy server on Server A that allows Server B to perform Docker operations through a http proxy

Objective: I am trying to setup a proxy server on server A so that server B can use docker proxy via server A with following conditions:

1. server B can only communicate to server A through port 8000
2. And port 8000 is already bound to nginx that is running on server A with calls to for example say "location /db" getting routed to a flask server
3. server B should be able to perform docker login and docker pull to ghcr.io through docker proxy

The current setup I have is:

On Server B: Modified the docker's /etc/systemd/system/docker.service.d/http-proxy.conf with:

[Service]
Environment="HTTP_PROXY=http://<server A ip>:8000"
Environment="HTTPS_PROXY=http://<server A ip>:8000"
Environment="NO_PROXY=localhost,127.0.0.1"

On Server A: I have installed and updated the squid.conf with

http_port 3128

acl allowed_ips src <server B ip>
http_access allow allowed_ips

PS If change the server B's docker conf to port 3128 I am able to use docker login and docker pull

The Problem Since the nginx has already bound the port 8000 and listening for :8000/db api traffic I have setup proxy_pass block but the nginx is unable to resolve the calls from docker login and I am constantly getting Bad request errors..Here is a simplified nginx conf file I am using:

server {
    listen 8000;
    location /db {
        include uwsgi_params;
        uwsgi_pass 127.0.0.1:5921;
    }

    location / {
        proxy_pass http://127.0.0.1:3128;
        proxy_set_header Host $host;
        proxy_set_header X-Real-IP $remote_addr;
        proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
        proxy_set_header X-Forwarded-Proto $scheme;
    }
}

Error Response: In nginx logs it says: "CONNECT ghcr.io:443 HTTP/1.1" 400 166 "-" "-"

And the docker login command returns Error response from daemon: Get "https://ghcr.io/v2/": Bad Request

Please help me how can I achieve my objective or if there is a better approach that I can use?

Ok, Finally figured out a solution:

I had to recompile the nginx with ngx_http_proxy_connect_module

Git repo: https://github.com/chobits/ngx_http_proxy_connect_module

But I did change the way we had to configure the nginx during recompilation and add all the config params used in a regular install that are listed with nginx -V and add the add module described the readme at the end