[nginx] same domain map to different project. [Vuex(vue-route) + Laravel]

project.dev.conf

server {
    listen 80;
    listen [::]:80;

    server_name test.dev;
    root /var/www/project1/public;
    index index.php index.html index.htm;

    location / {
        try_files $uri $uri/ /index.php$is_args$args;
    }
    
    # map project2 when url contains project2
    location ~ /project2 {
        alias /var/www/project2/dist;
        try_files $uri $uri/ /index.html last;
    }

    # map vuejs static folder.
    location /static {
        alias /var/www/project2/dist/static;
    }

    location ~ \.php$ {
        try_files $uri /index.php =404;
        fastcgi_pass php-upstream;
        fastcgi_index index.php;
        fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
        include fastcgi_params;
    }

    location ~ /\.ht {
        deny all;
    }
}

I tried this but it will download the file instead of executing it. I also heard that alias does not play well with try_files not sure if that is the problem in my case?