Hello,
it seems that you are using a pretty old version of docker - on my dev-system I am using docker version 28.2.2. So best would be to update your docker-installation to an up-to-date version.
Alternative is to check if you can use docker-compose instead of docker compose. But this comes with a minimal different format for the docker-compose.yml - at least it has to start with a version: 3 (or whatever version of docker-compose.yml you are using).
The output of docker info indicates that you use a docker package from the distribution repository. If you follow the installation instructions from the Docker docs, it will install all required packages, including the compose cli plugin.
on a second computer “docker compose watch” works with
nico@mendelssohn:~ > docker version
Client:
Version: 28.0.1
API version: 1.48
Go version: go1.24.4
Git commit: 068a01ea9470df6494cc92d9e64e240805ae47a7
Built: Fri Jun 20 21:22:35 2025
OS/Arch: linux/amd64
Context: default