> Are you sure that the test url that you are requesting matches this
> location?
>
> There may be more useful information in the debug log regarding what
> is going wrong for you.
>

With debug logging on, I ahve confirmed it is matching the correct location.

With:

location ^~ /Public {
satisfy any;
allow all;
auth_basic off;
try_files fake.html @apache;
}

It matched the /Public location and I get: "no user/password was provided for basic authentication" durring the access phase.

With:

location ^~ /Public {
auth_basic off;
try_files fake.html @apache;
}

It matches the Public location, and produces:
access phase: 9
post access phase: 10
access forbidden by rule, client: xxx.xxx.xxx.xxx, server: www.myserver.com, request: "GET /Public/ HTTP/1.1", host: "www.myserver.com".

Then it returns a 403 without a basic auth prompt. So It looks like the rule is ovverriding the basic auth prompt, but not the deny rule?