Ubuntu nginx FTP – can’t create new file

I have 2 servers which are equaly configured. One is 1 year old and has older Ubuntu version while the other one has the latest.

When I log into the latest one over FTP and try to create a file, it fails and gives the response 550 Permission denied

I’ve seen this question and answer and 100 similar ones where the answers are always “set the correct folder permission to 777 or 755 and the correct ownership”.

But the folder html which I try to create a file is 777 and the ownership the same as the user I’m logged over FTP to, same goes for the parent folder www.

Is this a bug with the latest version?

What files should I show you?

I’m already struggling for many hours with this.