❯ docker compose --verbose build
TRAC[0000] Docker Desktop integration not enabled       
WARN[0000] The "NODE_ENV" variable is not set. Defaulting to a blank string. 
WARN[0000] The "SENTRY_AUTH_TOKEN" variable is not set. Defaulting to a blank string. 
WARN[0000] The "NODE_ENV" variable is not set. Defaulting to a blank string. 
WARN[0000] The "SENTRY_AUTH_TOKEN" variable is not set. Defaulting to a blank string. 
WARN[0000] The "NODE_ENV" variable is not set. Defaulting to a blank string. 
WARN[0000] The "SENTRY_AUTH_TOKEN" variable is not set. Defaulting to a blank string. 
DEBU[0000] bake build config:
{
  "group": {
    "default": {
      "targets": [
        "web",
        "worker",
        "nginx",
        "api"
      ]
    }
  },
  "target": {
    "api": {
      "context": "/home/user/dev/project",
      "dockerfile": "/home/user/dev/project/Dockerfile",
      "args": {
        "BASIC_AUTH_TOKEN": "",
        "BASIC_AUTH_TOKEN_USER_IMAGE_EXPORT": "",
        "CI_COMMIT_SHA": "",
      },
      "tags": [
        "project-api"
      ],
      "target": "serve_api",
      "output": [
        "type=docker,load=true,push=false"
      ]
    },
    "nginx": {
      "context": "/home/user/dev/project/nginx",
      "dockerfile": "/home/user/dev/project/nginx/Dockerfile",
      "tags": [
        "project-nginx"
      ],
      "output": [
        "type=docker,load=true,push=false"
      ]
    },
    "web": {
      "context": "/home/user/dev/project",
      "dockerfile": "/home/user/dev/project/Dockerfile",
      "args": {
        "BASE_URL": "https://test-prog.domain.local/",
        "CI_COMMIT_SHA": "",
      },
      "tags": [
        "project-web"
      ],
      "target": "serve_web",
      "output": [
        "type=docker,load=true,push=false"
      ]
    },
    "worker": {
      "context": "/home/user/dev/project",
      "dockerfile": "/home/user/dev/project/Dockerfile",
      "args": {
        "BASE_URL": "https://test-proj.domain.local/",
        "BASIC_AUTH_TOKEN": "",
        "BASIC_AUTH_TOKEN_USER_IMAGE_EXPORT": "",
        "CI_COMMIT_SHA": "",
      },
      "tags": [
        "project-worker"
      ],
      "target": "serve_api",
      "output": [
        "type=docker,load=true,push=false"
      ]
    }
  }
} 
DEBU[0000] Executing bake with args: [bake --file - --progress rawjson --metadata-file /tmp/compose-build-metadataFile-1203980021.json --allow fs.read=/home/user/dev/project --allow fs.read=/home/user/dev/project --allow fs.read=/home/user/dev/project/nginx --allow fs.read=/home/user/dev/project] 
TRAC[0000] Plugin server listening on @docker_cli_d8df486f78df3b7357995be71bf0cef6 
DEBU[0005] otel error                                    error="<nil>"
^CTRAC[0055] Closing plugin server                        
TRAC[0055] Closing plugin server                        
DEBU[0055] otel error                                    error="<nil>"
DEBU[0055] otel error                                    error="<nil>"

Everything > 2.37.0 I think

I can reproduce with 2.37.3 locally

I downgraded from 28.3.0 earlier today, while trying to hunt this down. Both were showing this problem.

❯ docker info
Client: Docker Engine - Community
 Version:    28.2.0
 Context:    default
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.25.0
    Path:     /usr/libexec/docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  v2.37.3
    Path:     /usr/libexec/docker/cli-plugins/docker-compose

Server:
 Containers: 77
  Running: 5
  Paused: 0
  Stopped: 72
 Images: 157
 Server Version: 28.2.0
 Storage Driver: overlay2
  Backing Filesystem: btrfs
  Supports d_type: true
  Using metacopy: false
  Native Overlay Diff: true
  userxattr: false
 Logging Driver: json-file
 Cgroup Driver: systemd
 Cgroup Version: 2
 Plugins:
  Volume: local
  Network: bridge host ipvlan macvlan null overlay
  Log: awslogs fluentd gcplogs gelf journald json-file local splunk syslog
 CDI spec directories:
  /etc/cdi
  /var/run/cdi
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 runc
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: 05044ec0a9a75232cad458027ca83437aae3f4da
 runc version: v1.2.5-0-g59923ef
 init version: de40ad0
 Security Options:
  seccomp
   Profile: builtin
  cgroupns
 Kernel Version: 6.15.4-200.fc42.x86_64
 Operating System: Fedora Linux 42 (Workstation Edition)
 OSType: linux
 Architecture: x86_64
 CPUs: 16
 Total Memory: 30GiB
 Name: nbssc305os
 ID: 0a158b0d-7ffa-46ad-a1b1-e5bf6766169e
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 Experimental: false
 Insecure Registries:
  ::1/128
  127.0.0.0/8
 Live Restore Enabled: false