SysFailure0x5a on "W3 Total Cache - CSS & JS Minify Doesn't Work. The css and js files don't exist"

I enabled minify debugging and found this error:

W3 Total Cache error:It appears Minify URL rewriting is not working. Please verify that all configuration files are included in the configuration file

I'm using nginx. I checked the nginx.conf file and w3 total cache did place the rewrite rules there.

# BEGIN W3TC Minify core
rewrite ^/wp-content/cache/minify.*/w3tc_rewrite_test$ /wp-content/plugins/w3-total-cache/pub/minify.php?w3tc_rewrite_test=1 last;
set $w3tc_enc "";
if (-f $request_filename$w3tc_enc) {
    rewrite (.*) $1$w3tc_enc break;
}
rewrite ^/wp-content/cache/minify/(.+/[X]+\.css)$ /wp-content/plugins/w3-total-cache/pub/minify.php?test_file=$1 last;
rewrite ^/wp-content/cache/minify/(.+\.(css|js))$ /wp-content/plugins/w3-total-cache/pub/minify.php?file=$1 last;
# END W3TC Minify core

What is going on here??? Why doesn't this work?