nginx reverse proxy not working with Cloudflare when SSL is turned on

Hello I'm running into an issue when trying to reverse proxy my vaultwarden and overseerr services. My domain is in cloudflare with two A records that are updated to accommodate ddns: requests.mydomain.com & vaultwarden.mydomain.com.

Using nginx with SSL(Let's Encrypt) turned off will work. Using it turned ON will give the errors in my browser:

• Firefox: The page isn’t redirecting properly
• Edge: ERR_TOO_MANY_REDIRECTS

When using wheregoes.com to check the redirects. It indeed is redirect looping, but only when SSL is turned on.

When using asus's ddns for one of my services with SSL turned ON everything will work as expected. So I'm thinking there is something wrong with how my cloudflare is configured. In my cloudflare I have:

• No redirect rules on
• SSL/TLS in off mode
• HSTS off

What would be the risk of not having SSL turned on for a homelab with public facing services?