• I have tried with the latest version of Docker Desktop
• I have tried disabling enabled experimental features
• I have uploaded Diagnostics
• Diagnostics ID:

Actual behavior

After upgraded to latest 4.10, the environment variable values brought in by env_file: in compose file are no longer honored. Instead, the environment variable with the same name on Windows system overrides the specified value in env file referenced by env_file:. This breaks compose file use cases as long as there is some Windows environment variable happen to have the same name.

Meanwhile, values specified by environment: work as expected, not affected by Windows environment variables.

Expected behavior

The values in env file referenced by env_file: should take effect. Environment variables from Windows system should not matter unless I reference them explicitly in compose file.

Information

• Windows Version: Windows 10 20H2
• Docker Desktop Version: 4.10.1
• WSL2 or Hyper-V backend? WSL2
• Are you running inside a virtualized Windows e.g. on a cloud server or a VM: Yes

Output of & "C:\Program Files\Docker\Docker\resources\com.docker.diagnose.exe" check

& "C:\Program Files\Docker\Docker\resources\com.docker.diagnose.exe" check
[2022-07-08T04:09:47.831668300Z][com.docker.diagnose.exe][I] set path configuration to OnHost
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?
[SKIP] DD0018: does the host support virtualization?
[PASS] DD0002: does the bootloader have virtualization enabled?
[PASS] DD0017: can a VM be started?
[PASS] DD0024: is WSL installed?
[PASS] DD0021: is the WSL 2 Windows Feature enabled?
[PASS] DD0022: is the Virtual Machine Platform Windows Feature enabled?
[PASS] DD0025: are WSL distros installed?
[PASS] DD0026: is the WSL LxssManager service running?
[PASS] DD0029: is the WSL 2 Linux filesystem corrupt?
[PASS] DD0035: is the VM time synchronized?
[PASS] DD0015: are the binary symlinks installed?
[PASS] DD0003: is the Docker CLI working?
[PASS] DD0013: is the $PATH ok?
[FAIL] DD0005: is the user in the docker-users group? Access is denied.
[PASS] DD0007: is the backend responding?
[FAIL] DD0014: are the backend processes running? 1 error occurred:
* vpnkit.exe is not running

[PASS] DD0008: is the native API responding?
[PASS] DD0009: is the vpnkit API responding?
[PASS] DD0010: is the Docker API proxy responding?
[PASS] DD0006: is the Docker Desktop Service 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] DD0033: does the host have Internet access?

Please investigate the following 2 issues:

1 : The test: are the backend processes running?
Failed with: 1 error occurred:
* vpnkit.exe is not running

Not all of the backend processes are running.

2 : The test: is the user in the docker-users group?
Failed with: Access is denied.

The current user must be member of the docker-users group. Press the Win + R keys to open Run, type lusrmgr.msc into Run, followed by Enter to open Local Users and Groups.

Steps to reproduce the behavior

file appshared.env

ASPNETCORE_ENVIRONMENT=Production

file compose.yml

version: '3.8'

services:
ubuntu:
image: ubuntu:22.04
env_file: appshared.env
command: echo $ASPNETCORE_ENVIRONMENT

test

PS> $env:ASPNETCORE_ENVIRONMENT="Development"
PS> docker compose up
It should output Production but instead output Development