To the nearest thousand is rounding to the fourth digit before the decimal point. The digit to its right is used to decide whether to round up or down: if it is 0-4 it rounds down, otherwise it is 5-9 and rounds up:
With 265 the digit to the right of the thousands digit is 2, so it rounds down: 265 → 0
1000
1000
1000
It is: 270
260
0
1000
176 rounded to the nearest 1000 is 0
1000
1000
0
1000