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The "unknown directive brotli" error indicates that the Brotli compression module is not installed or enabled on the server. Brotli is a compression algorithm supported by recent versions of Nginx to reduce file size and optimize website performance. To fix the error, the Brotli module needs to be installed and added to the Nginx configuration file. This can be done by building Nginx from source with the Brotli module or installing it via a package manager like apt-get or yum. Once installed, the Brotli module can be enabled in the Nginx configuration by adding the "brotli on;" directive to the appropriate context.