Docker Angular application with Nginx: (111: Connection refused) while connecting to upstream - node.js

Question

I'm trying to use Nginx for a reverse proxy. I have an Angular application running on Node server on port 4200. I am using a Docker image for the deployment
Below is the Dockerfile configuration:
FROM node:12.16.3-alpine as builder
RUN mkdir /app
WORKDIR /app
COPY package*.json ./
RUN npm install && npm install node-sass
COPY . .
RUN npm run build:ssr --prod --output-path=dist
EXPOSE 4200
CMD [ "node", "dist/server.js" ]
FROM nginx:alpine
COPY ./.nginx/nginx.conf /etc/nginx/nginx.conf
RUN rm -rf /usr/share/nginx/html/*
COPY --from=builder /app/dist /usr/share/nginx/html
EXPOSE 80 8080
ENTRYPOINT ["nginx", "-g", "daemon off;"]
I have the Nginx configuration as below:
worker_processes 4;
events { worker_connections 1024; }
http {
server {
listen 0.0.0.0:8080;
listen [::]:8080;
listen 127.0.0.1;
server_name localhost;
default_type application/octet-stream;
gzip on;
gzip_comp_level 6;
gzip_vary on;
gzip_min_length 1000;
gzip_proxied any;
gzip_types text/plain text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript;
gzip_buffers 16 8k;
gunzip on;
client_max_body_size 256M;
root /usr/share/nginx/html;
autoindex on;
location / {
proxy_http_version 1.1;
proxy_set_header Upgrade $http_upgrade;
proxy_set_header Connection 'upgrade';
proxy_set_header Host $host;
proxy_cache_bypass $http_upgrade;
proxy_pass http://127.0.0.1:4200;
}
}
}
When I am running the image in the Docker container using the command
docker run --name application -d -p 8080:8080 app
I am getting the below error:
*5 connect() failed (111: Connection refused) while connecting to upstream, client: xxx.xx.0.1, server: localhost, request: "GET / HTTP/1.1", upstream: "http://127.0.0.1:4200/", host: "localhost:8080" xxx.xxx.0.1 - - [14/Mar/2021:12:41:24 +0000] "GET / HTTP/1.1" 502 559 "-" "Mozilla/5.0 (Macintosh; Intel Mac OS X 10_14_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/89.0.4389.82 Safari/537.36"