Docker-compose on Windows 10: Fatal Python error: Py_Initialize: unable to load the file system codec

Hi All,
When trying to run docker-compose,e.g.:
docker-compose --version

the following error message appears:
Fatal Python error: Py_Initialize: unable to load the file system codec
ModuleNotFoundError: No module named ‘encodings’

Current thread 0x0000228c (most recent call first):

Any suggestions how to fix it?

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