Nginx multiple domain/server blocks | SSL strange request character issue

We have Nginx running and multiple (around 80) server blocks/websites configured with both HTTPS and HTTP. Now adding another server blocks with website name e.g. xyz.com, then only HTTPS websites stop working. On checking the access.log, I found below logs

[23/Apr/2019:15:06:02 +0530] "\x16\x03\x01\x02\x00\x01\x00\x01\xFC\x03\x039\xAD$\xB4\xBB\x94\x98\xB8Q9\x84\xE4C\xB7\x98Z8\x9E@\x8E\xF8\xD79Jl\xA3\xAEY\xB9\xDA\x1A> \x04\xD7\x1B\xE7\x1Ch\xC3`\x81?g}\xE1y\x8D\x8E\x07\xDA;\x0F\x9D\x0B\xFF\xA2p\x0F\xB5&\xDFa\xF0\xF9\x00\x22ZZ\x13\x01\x13\x02\x13\x03\xC0+\xC0/\xC0,\xC00\xCC\xA9\xCC\xA8\xC0\x13\xC0\x14\x00\x9C\x00\x9D\x00/\x005\x00" 400 182 "-" "-"

This strange http request is getting printed for HTTPS websites hit.

What can be the possible reason for this? Is there any limit on number of server blocks files in /sites-available or /sites-enabled?

Thanks!