Nginx - Password Protect Directory
I'm sure you'd have fixed this by now, but thought I'd add this for others:
The Nginx documentation is a little cryptic on this, but does mention the "Apache variant of the MD5-based password algorithm (apr1)" should be used to generate the password hash. So using the -apr1 flag instead of -1 will work:
printf "Jane:$(openssl passwd -apr1 V3RySEcRe7)\n" >> /etc/nginx/htpasswd