[BUG] `docker compose build` fails to find a local image used in FROM

Description

Using a present, locally docker run:able image as the FROM stage in a Dockerfile results in docker compose trying to pull the image and failing. See Steps to Reproduce.

Steps To Reproduce

docker.compose.yml:

services:
  someimage:
    image: someimage:sometag
    build:
      dockerfile: Dockerfile.someimage
  service1:
    build:
      dockerfile: Dockerfile.service1
      args:
        IMAGE_NAME: someimage:sometag

Dockerfile.someimage:

FROM alpine
RUN echo "lorem ipsum" > /lipsum.txt

Dockerfile.service1:

ARG IMAGE_NAME
FROM ${IMAGE_NAME:?} AS stage1

FROM alpine
COPY --from=stage1 /lipsum.txt /lipsum.txt
CMD ["cat", "/lipsum.txt"]

Running docker compose build someimage && docker compose build service1 results in:

=> ERROR [service1 internal] load metadata for docker.io/library/someimage:sometag                 0.8s
------
 > [service1 internal] load metadata for docker.io/library/someimage:sometag:
------
failed to solve: someimage:sometag: failed to resolve source metadata for docker.io/library/someimage:sometag: pull access denied, repository does not exist or may require authorization: server message: insufficient_scope: authorization failed

docker buildx container logs:

time="2024-09-16T21:05:27Z" level=info msg="running server on /run/buildkit/buildkitd.sock"
time="2024-09-16T21:06:46Z" level=info msg="trying next host" error="pull access denied, repository does not exist or may require authorization: server message: insufficient_scope: authorization failed" host=registry-1.docker.io
time="2024-09-16T21:06:46Z" level=error msg="/moby.buildkit.v1.frontend.LLBBridge/Solve returned error: rpc error: code = Unknown desc = someimage:sometag: failed to resolve source metadata for docker.io/library/someimage:sometag: pull access denied, repository does not exist or may require authorization: server message: insufficient_scope: authorization failed"
time="2024-09-16T21:06:46Z" level=error msg="/moby.buildkit.v1.Control/Solve returned error: rpc error: code = Unknown desc = someimage:sometag: failed to resolve source metadata for docker.io/library/someimage:sometag: pull access denied, repository does not exist or may require authorization: server message: insufficient_scope: authorization failed"

Using DOCKER_BUILDKIT=0 docker compose build builds the image just fine, same goes for:

docker build . -f Dockerfile.someimage -t someimage:sometag
docker build . -f Dockerfile.service1 --build-arg IMAGE_NAME=someimage:sometag -t service1
docker run --rm service1

lorem ipsum

This also happens if the image name is hard-coded (not passed as an ARG).

Compose Version

Docker Compose version 2.29.3 (also 2.29.4)

Docker Environment

Client:
 Version:    27.2.1
 Context:    default
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  0.17.1
    Path:     /usr/lib/docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  2.29.4
    Path:     /usr/lib/docker/cli-plugins/docker-compose

Server:
 Containers: 1
  Running: 1
  Paused: 0
  Stopped: 0
 Images: 4
 Server Version: 27.2.1
 Storage Driver: overlay2
  Backing Filesystem: extfs
  Supports d_type: true
  Using metacopy: true
  Native Overlay Diff: false
  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
 containerd version: 7f7fdf5fed64eb6a7caf99b3e12efcf9d60e311c.m
 runc version:
 init version: de40ad0
 Security Options:
  seccomp
   Profile: builtin
  cgroupns
 Kernel Version: 6.10.10-arch1-1
 Operating System: Arch Linux
 OSType: linux
 Architecture: x86_64
 CPUs: 20
 Total Memory: 62.33GiB
 Name: tooo
 ID: 6ed50486-207f-4523-9ee7-7372aae95dac
 Docker Root Dir: /home/docker
 Debug Mode: false
 Experimental: false
 Insecure Registries:
  127.0.0.0/8
 Live Restore Enabled: false

Anything else?

Could be a BuildKit issue since DOCKER_BUILDKIT=0 works...?

UPDATE: this actually works if I use the "default" docker buildx driver/endpoint (and fails with the docker-container) one.

docker / compose