Hopefully I'm just being stupid here and missing something, as your solution seems fairly strait forward and simple. I spun up a compose with user, password and file size all defined, only different thing was the volume location mapping to the host that was changed. The issue, is that when I connect to the webdav to test through the browser there is no prompt for authentication and if anyone found out about the URL they could access the files.

For context if it matters, the host port is being passed through NGINX proxy manager.

my docker compose

version: '3'
services:
  webdav:
    container_name: docker-webdav-nginx
    restart: unless-stopped
    environment:
      - WEBDAV_USER=${USER}
      - WEBDAV_PASS=${PASSWORD}
      - NGINX_CLIENT_MAX_BODY_SIZE=${MAX_FILE_SIZE} #ex 500M, 0 for no limit
    networks:
      - webdav
    ports:
      - '8617:80'
    volumes:
      - '/e/userfiles/users/exampleuser:/var/www/webdav'
    image: loganmarchione/docker-webdav-nginx:latest

networks:
  webdav:

#volumes:
#  webdav:
#    driver: local

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I'm getting some 413 errors Request entity too large when syncing some data - would you consider setting client_max_body_size in the nginx configuration to support larger file sizes?