When passing through SSL from web server A to web server B (via nginx), does web server A need SSL configured as well, or just web server B?

Question

I'm using nginx here as an example, but this is really more of a conceptual question about SSL termination and TCP that could apply to any web server.

Basically, if web server A receives TCP traffic on port 443 (the first nginx config) and then forwards that to web server B on port 1000 running HTTPS (the second nginx config), do I need to even have SSL configured for web server A?

As far as I understand, the answer is no, because web server A is ultimately just forwarding the encrypted traffic it gets on 443 "as is" to port 1000 to be decrypted by web server B. Basically:

client -> encrypted traffic -> web server A -> Pass through (encrypted) -> web server B -> decrypted traffic

However, on the first connection, does it matter than the traffic is temporarily unencrypted, as it routes through web server A before the SSL handshake is established. I've never had a setup where the client establishes an SSL connection to web server B via TCP over web server A, which is not encrypted, so I'm not sure if that is secure. I think it's still fine, as the SSL handshake itself occurs over an unencrypted TCP connection, but not quite sure.

events {}
stream {
    server {
        listen 443;
        listen [::]:443;
        proxy_pass 127.0.0.1:1250;
    }
}

events {}
http {
    server {
        listen 1000 ssl http2;
        listen [::]:1000 ssl http2;

        ssl_certificate /etc/ssl/foo.crt;
        ssl_certificate_key /etc/ssl/foo.pem;
   
        # App

        location / {
            proxy_pass http://localhost:3000;
        }