I’m running Drupal on Nginx + PHP 8.2-FPM, and I’ve hit a strange issue.

When I enable CSS and JS preprocessing:
$config['system.performance']['css']['preprocess'] = TRUE;

$config['system.performance']['js']['preprocess'] = TRUE;

The site completely loses its UI, only raw HTML is shown, no CSS or JS. If I set them back to FALSE, Everything works normally, CSS and JS loads.

• The css/ and js/ subdirectories stay empty when preprocessing is enabled.
• The cache was cleared each time.
• The site is running from a subdirectory (/dp/).
• Public file base URL points to http://<server-ip>/dp/sites/default/files

It looks like aggregation isn’t generating or serving any files at all.
Any guidance would help a lot, thank you!