medsha on "Permalinks Nginx not working - Help required"

@Jan Dembowski

Nope, that didn't do the trick.

When I add the suggested command line above the location ~ \.php$ I get the error

Restarting nginx: [emerg]: duplicate location "/" in /etc/nginx/sites-enabled/default:41
configuration file /etc/nginx/nginx.conf test failed

After that happened, I tried to implement

try_files $uri $uri/ /index.php; into location ~ \.php$ itself
I did disable the try_files $uri @wordpress; part in the code when I tried your code. :)

It resulted into 404 errors when I turn on custom permalinks.

Any other suggestions maybe?