Thank you Francis Daly. Jumping to named location worked in my env also.
I have another issue now:
I want to pass the response body of http://test.svc.cluster.local:9080/v2/test/* apis to named location `acreate` which does proxy_pass to another micro-service (which takes the response of /v2/test* api as payload). I learnt that `body_filter_by_lua` does not work with internal redirects, are there any other options to do this?