Loop Back Test Failed

My Problem:

I am having an arduino nano , it worked fine initially where i was able to upload code into the nano , it all worked fine. I was trying to flash my esp8266 with a suitable firmware for it to respond towards AT commands , i used my arduino nano as a FTDI to serial convertor to flash the esp8266.
It is from that time my arduino stopped accepting codes , whenever i hit the upload button , the code first compiles successfully , then stays in the uploading part itself.
After long time it says "An error occurred while uploading the sketch"... I am not able to resolve this problem..

Thing i have tried:

  1. I have tried this loopback test where the serial monitor does not give any output when i send something (doesn't echo back)

  2. Reinstalled the arduino IDE

  3. Tried with a different computer (no changes -stays in the uploading part itself)

  4. Tried connecting the arduino with a different COM port and also tried with a different cable

I am not able to figure out what may be the issue , have i destroyed the bootloader ??
Someone please help me with this problem..

Go to settings and check "show verbose output during upload", try again, and post the output here.

Using the serial adapter on a nano as a serial adapter should not damage the board (however, you can buy standalone serial adapters for like a buck and change shipped - it's not much of an investment, and they make life a lot easier).