Help connecting velocity to spigot

Hi I am trying to setup velocity to connect to spigot and have connection problems. The mcserver does not log anything upon connection attempt whereas velocity logs connection refused:

Error message and docker config here: https://pastebin.com/e2Ca8kUd
velocity.toml here https://pastebin.com/4t4p1UgC


In the server.properties I have set the IP to 127.0.0.1 as in the securing guide here https://docs.papermc.io/velocity/security
I have also set the port in the server.properties to 25566. And online-mode=false. https://pastebin.com/GzuNE178

In spigot.yml I have set bungeecord=true.
In paper-global.yml I have set the proxies as follows:
proxies:
  bungee-cord:
    online-mode: false
  proxy-protocol: false
  velocity:
    enabled: true
    online-mode: true
    secret: <contains secret>


Any help would be nice here, as I am not sure which config(s) I have misconfigured.
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It is vital that you secure your backend servers. As part of setting up Velocity, you will put your
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