After a bit more troubleshooting, I've noticed when I hit the URL https://chat.example.com/api/v3/users/websocket directly, I get this message
Bad Request
{"id":"api.web_socket.connect.upgrade.app_error","message":"Failed to upgrade websocket connection","detailed_error":"","request_id":"11af9tzb83y37cfw4u4ugppykh","status_code":500,"is_oauth":false}
So I believe my setup for Nginx should allow for the HTTP connection to be upgraded to a websocket connection. Correct? Seems that it is setup properly.
Thanks,
Jay