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According to the release notes of v1.2.0, the wallet_api_plugin has been removed:

• it is no longer possible to run the wallet_plugin or wallet_api_plugin as part of nodeos. This configuration has not been recommended for many versions as it places private information in the same process space as unrelated RPCs and the execution environment for untrusted code (WebAssembly). This release officially removes the support.

You could possibly use eosjs for signing transactions depending on your requirements.