[BUG] Docker compose volume bind error on remote deployments

Description

I have the following problem:

I run docker compose in gitlab pipelines (connect to a remote host with $DOCKER_HOST variable via ssh, then bind directories on the remote host as docker volumes to some compose services) and all of a sudden for the last couple days they started failing with this error:

$ docker compose -f .ci/docker-compose.yml up
service "app" refers to undefined volume /my/directory/on/host: invalid compose project

Downgrading docker compose on the client (docker image) to v2.28.1 from v2.29.0 fixes the issue, but im looking for a long-term solution

Steps To Reproduce

No response

Compose Version

No response

Docker Environment

The current failing pipeline info:

$ docker info
Client:
 Version:    27.0.3
 Context:    default
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.16.1
    Path:     /usr/local/libexec/docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  v2.29.0
    Path:     /usr/local/libexec/docker/cli-plugins/docker-compose
Server:
 Containers: 28
  Running: 28
  Paused: 0
  Stopped: 0
 Images: 24
 Server Version: 27.1.0
 Storage Driver: overlay2
  Backing Filesystem: extfs
  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
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 runc
 Default Runtime: runc
 Init Binary: docker-init
 runc version: v1.1.13-0-g58aa920
 init version: de40ad0
 Security Options:
  apparmor
  seccomp
   Profile: builtin
  cgroupns
 Kernel Version: 5.15.0-113-generic
 Operating System: Ubuntu 22.04.4 LTS
 OSType: linux
 Architecture: x86_64
 CPUs: 2
 Total Memory: 3.82GiB
 ID: NBNI:6QWV:DAUM:W5XY:7M7A:7XR2:MXIE:74BC:TS2Q:P5IF:2NPT:UGBC
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 Experimental: false
 Insecure Registries:
  127.0.0.0/8
 Live Restore Enabled: false

The last successful pipeline (several weeks ago):

$ docker info
Client:
 Version:    26.1.4
 Context:    default
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.15.1
    Path:     /usr/local/libexec/docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  v2.27.2
    Path:     /usr/local/libexec/docker/cli-plugins/docker-compose
Server:
 Containers: 26
  Running: 26
  Paused: 0
  Stopped: 0
 Images: 21
 Server Version: 25.0.3
 Storage Driver: overlay2
  Backing Filesystem: extfs
  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
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 runc
 Default Runtime: runc
 Init Binary: docker-init
 runc version: v1.1.12-0-g51d5e94
 init version: de40ad0
 Security Options:
  apparmor
  seccomp
   Profile: builtin
  cgroupns
 Kernel Version: 5.15.0-112-generic
 Operating System: Ubuntu 22.04.4 LTS
 OSType: linux
 Architecture: x86_64
 CPUs: 2
 Total Memory: 3.82GiB
 ID: NBNI:6QWV:DAUM:W5XY:7M7A:7XR2:MXIE:74BC:TS2Q:P5IF:2NPT:UGBC
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 Experimental: false
 Insecure Registries:
  127.0.0.0/8
 Live Restore Enabled: false



### Anything else?

_No response_

docker / compose