make sure, you do not have nginx and other softwares such as mariadb/mysql present on your server. if you are running: sudo bash setup_frappe.sh --setup-production
it does fail if you have nginx or mysql/mariadb pre-installed.
Deploying VM with minimal image which does not come with any preinstalled softwares as mentioned above will help…
If already installed, then remove nginx along with config files before running bench setup on server.
PS: Reinstall VM with CentOS and try again as suggested above.