Docker Compose gives Error response from daemon

I am trying to setup a new Container via a docker-compose.yml. When trying to execute it, I am getting an error mentioning:

PS Microsoft.PowerShell.Core\FileSystem::\\wsl.localhost\docker-desktop> docker compose up --detach
[+] Running 0/1
 - Container myproject-actual_server-1  Creating                                                                                                                                                      0.0s 
Error response from daemon: accessing specified distro mount service: stat /run/guest-services/distro-services/docker-desktop.sock: no such file or directory

I’m not sure what I am missing, as I’m very new to Dockers. I did get two containers running successfully using this, but I wanted to use a yaml so I can easily add more configuration such as HTTPS cert info:

docker run --pull=always --restart=unless-stopped -d -p 5006:5006 -v YOUR/PATH/TO/DATA:/data --name my_actual_budget actualbudget/actual-server:latest

My windows directory looks like this, and this is where my yaml is:

\\wsl.localhost\docker-desktop

The yaml I am using looks like this:

name: myproject
services:
  actual_server:
    image: docker.io/actualbudget/actual-server:latest
    ports:
      # This line makes Actual available at port 5006 of the device you run the server on,
      # i.e. http://localhost:5006. You can change the first number to change the port, if you want.
      - '3006:5006'
     # environment:
      # Uncomment any of the lines below to set configuration options.
      # - ACTUAL_HTTPS_KEY=/data/selfhost.key
      # - ACTUAL_HTTPS_CERT=/data/selfhost.crt
      # - ACTUAL_PORT=3006
      # - ACTUAL_UPLOAD_FILE_SYNC_SIZE_LIMIT_MB=20
      # - ACTUAL_UPLOAD_SYNC_ENCRYPTED_FILE_SYNC_SIZE_LIMIT_MB=50
      # - ACTUAL_UPLOAD_FILE_SIZE_LIMIT_MB=20
      # See all options and more details at https://actualbudget.github.io/docs/Installing/Configuration
      # !! If you are not using any of these options, remove the 'environment:' tag entirely.
    volumes:
      # Change './actual-data' below to the path to the folder you want Actual to store its data in on your server.
      # '/data' is the path Actual will look for its files in by default, so leave that as-is.
      - ./actual-data:/data
    healthcheck:
      # Enable health check for the instance
      test: ['CMD-SHELL', 'node src/scripts/health-check.js']
      interval: 60s
      timeout: 10s
      retries: 3
      start_period: 20s
    restart: unless-stopped


It is Docker, Dockers is another brand. If you meant containers, those are not Dockers. Docker is mainly the daemon and also the company.

My idea is that you are trying to use the Docker command from windows while reading files through the shared filesystem of WSL. You should either store the files on Windows and definitely not inside the shared folder of the docker-desktop WSL2 distribution, or run the command in a custom WSL2 distribution after you enabled WSL2 integration in Docker Desktop. The WSL2 integration is a kind of remote connection to the docker daemon inside another WSL2 distribution, but it allows you to store the files inside your WSL2 distribution so you can have your files on a Linux filesystem which can give you a better performance since there is no need for mounting files from the host into a virtual machine, but only mounting files from the same virtual machine from one WSL2 distribution (which is a container too) into another WSL2 distribution.

Thanks for the reply and sorry for the spellcheck to Dockers.

Ultimately I did figure out my issue, which is as you stated I believe. I was placing the compose. yml in my WSL Linux root of Windows. I moved the compose file to the Docker folder of Program 64 and tried running the compose from there and it was successful. This has been a massive learning experience but glad to finally get to the bottom of it.