I am proxying lsws A (4.0.3) to another lsws B (4.0.5). gzip is enabled on B and A. A returns responses without gzip encoding, but with a content-encoding: gzip header.
How about access server A directly with client, does it gzip and give the correct gzip header?
What the request headers send by Client?
If you use tcpdump to get the whole request and response at server A, and B, it will be helpful.