I have the following configuration for a swagger.json in nginx:

location /project1/v2 {
      
  absolute_redirect off;
  alias             /project1/v2;
  expires           1d;

  location ~* .(?:json|yml|yaml)$ {
    # SWAGGER_ROOT
    expires         -1;
    include         /etc/nginx/templates/cors.conf;
  }

  include         /etc/nginx/templates/cors.conf;
}

location /project1{
  set               $args $args&url=http://localhost/project1/v2/swagger.json;
  absolute_redirect off;
  alias             /usr/share/nginx/html/;
  expires           1d;
  include           /etc/nginx/templates/cors.conf;
}

and this works fine. However, I have a second project where I try to capture the name from URL using regex and redirect as follows:

location ~ ^/(project1|project2)/v2 {
      
  absolute_redirect off;
  alias             /$1/v2;
  expires           1d;

  location ~* .(?:json|yml|yaml)$ {
    # SWAGGER_ROOT
    expires         -1;
    include         /etc/nginx/templates/cors.conf;
  }

  include         /etc/nginx/templates/cors.conf;
}

location ~ ^/(project1|project2) {
  set               $args $args&url=http://localhost/$1/v2/swagger.json;
  absolute_redirect off;
  alias             /usr/share/nginx/html/;
  expires           1d;
  include           /etc/nginx/templates/cors.conf;
}

and this yields to too many redirects error with URL changing to: http://localhost/project1/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/index.html/?&url=http://localhost/project1/v2/swagger.json&url=http://localhost/project1/v2/swagger.json&url=http://localhost/project1/v2/swagger.json&url=http://localhost/project1/v2/swagger.json&url=http://localhost/project1/v2/swagger.json...

What am I missing?