• I have tried with the latest version of Docker Desktop
• I have tried disabling enabled experimental features
• I have uploaded Diagnostics
• Diagnostics ID: 795F330D-B823-4025-9550-703A3E38857E/20220812105351

Expected behavior

docker compose works as expected

Actual behavior

Error:
Invalid template: "^https?://(localhost|127\\.0\\.0\\.1)(:[0-9]+)?$"

Information

• macOS Version: Monterey 12.5
• Intel chip or Apple chip: Apple chip (M1)
• Docker Desktop Version: 4.11.1

Output of /Applications/Docker.app/Contents/MacOS/com.docker.diagnose check

Starting diagnostics

[PASS] DD0027: is there available disk space on the host?
[PASS] DD0028: is there available VM disk space?
[PASS] DD0031: does the Docker API work?
[PASS] DD0004: is the Docker engine running?
[PASS] DD0011: are the LinuxKit services running?
[PASS] DD0016: is the LinuxKit VM running?
[PASS] DD0001: is the application running?
[PASS] DD0018: does the host support virtualization?
[PASS] DD0017: can a VM be started?
[PASS] DD0015: are the binary symlinks installed?
[PASS] DD0003: is the Docker CLI working?
[PASS] DD0013: is the $PATH ok?
[PASS] DD0007: is the backend responding?
[PASS] DD0014: are the backend processes running?
[PASS] DD0008: is the native API responding?
[PASS] DD0009: is the vpnkit API responding?
[PASS] DD0010: is the Docker API proxy responding?
[PASS] DD0012: is the VM networking working?
[PASS] DD0032: do Docker networks overlap with host IPs?
[SKIP] DD0030: is the image access management authorized?
[PASS] DD0019: is the com.docker.vmnetd process responding?
[PASS] DD0033: does the host have Internet access?
No fatal errors detected.

Steps to reproduce the behavior

I am using a sample docker-compose file like this:

services:
  hello:
    container_name: hello-world
    image: hello-world

Also I have this .env file in the same directory:

CORS_ALLOW_ORIGIN=^https?://(localhost|127\.0\.0\.1)(:[0-9]+)?$

As you can see, .env file is not used in docker-compose.yaml, but when I run any docker compose command, the error above is thrown.

.env file is used by another application. If I rewrite it as follows (two $ at the end), then it works for docker compose, but this is not the correct value I want to have.

CORS_ALLOW_ORIGIN=^https?://(localhost|127\.0\.0\.1)(:[0-9]+)?$$

Why is docker-compose forcing me to change this .env file?