Docker Compose through SSH failing and referring to docker.example.com

If it can be any use, here is the exact error message I get:

error during connect: Delete "http://docker.example.com/v1.42/containers/35b6f4271551a29ee4213fd8dbe9aa0239ae100bf9c74de2b780555918e134d8?force=1&v=1\": command [ssh -l xxxxxxxxx.xxx.xxx.xxx docker system dial-stdio] has exited with exit status 1, please make sure the URL is valid, and Docker 18.09 or later is installed on the remote host: stderr=

(I masked user name and IP address with xxxxxxx)

Docker version on target machine:

Client: Docker Engine - Community
 Version:           23.0.1
 API version:       1.42
 Go version:        go1.19.5
 Git commit:        a5ee5b1
 Built:             Thu Feb  9 19:47:01 2023
 OS/Arch:           linux/amd64
 Context:           default

Server: Docker Engine - Community
 Engine:
  Version:          23.0.1
  API version:      1.42 (minimum version 1.12)
  Go version:       go1.19.5
  Git commit:       bc3805a
  Built:            Thu Feb  9 19:47:01 2023
  OS/Arch:          linux/amd64
  Experimental:     false
 containerd:
  Version:          1.6.18
  GitCommit:        2456e983eb9e37e47538f59ea18f2043c9a73640
 runc:
  Version:          1.1.4
  GitCommit:        v1.1.4-0-g5fd4c4d
 docker-init:
  Version:          0.19.0
  GitCommit:        de40ad0

Docker info on target machine:

Client:
 Context:    default
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.10.2
    Path:     /usr/libexec/docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  v2.16.0
    Path:     /usr/libexec/docker/cli-plugins/docker-compose
  scan: Docker Scan (Docker Inc.)
    Version:  v0.23.0
    Path:     /usr/libexec/docker/cli-plugins/docker-scan

Server:
 Containers: 8
  Running: 5
  Paused: 0
  Stopped: 3
 Images: 25
 Server Version: 23.0.1
 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 logentries splunk syslog
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 runc
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: 2456e983eb9e37e47538f59ea18f2043c9a73640
 runc version: v1.1.4-0-g5fd4c4d
 init version: de40ad0
 Security Options:
  apparmor
  seccomp
   Profile: builtin
  cgroupns
 Kernel Version: 5.15.0-41-generic
 Operating System: Ubuntu 22.04 LTS
 OSType: linux
 Architecture: x86_64
 CPUs: 16
 Total Memory: 15.41GiB
 Name: *xxxxxxxxxx*
 ID: a8964b45-099b-480a-88f8-f4c1292b2f7b
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 Registry: https://index.docker.io/v1/
 Experimental: false
 Insecure Registries:
  *xxx.xxx.xxx.xxx:xxxx*
  *xxxxxxxxxx:xxxx*
  127.0.0.0/8
 Live Restore Enabled: false

Docker version on my workstation (where I run the command from):

Client:
 Cloud integration: v1.0.29
 Version:           20.10.21
 API version:       1.41
 Go version:        go1.18.7
 Git commit:        baeda1f
 Built:             Tue Oct 25 18:08:16 2022
 OS/Arch:           windows/amd64
 Context:           default
 Experimental:      true

Server: Docker Desktop 4.15.0 (93002)
 Engine:
  Version:          20.10.21
  API version:      1.41 (minimum version 1.12)
  Go version:       go1.18.7
  Git commit:       3056208
  Built:            Tue Oct 25 18:00:19 2022
  OS/Arch:          linux/amd64
  Experimental:     false
 containerd:
  Version:          1.6.10
  GitCommit:        770bd0108c32f3fb5c73ae1264f7e503fe7b2661
 runc:
  Version:          1.1.4
  GitCommit:        v1.1.4-0-g5fd4c4d
 docker-init:
  Version:          0.19.0
  GitCommit:        de40ad0

Docker info on my workstation:

Client:
 Context:    default
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc., v0.9.1)
  compose: Docker Compose (Docker Inc., v2.13.0)
  dev: Docker Dev Environments (Docker Inc., v0.0.5)
  extension: Manages Docker extensions (Docker Inc., v0.2.16)
  sbom: View the packaged-based Software Bill Of Materials (SBOM) for an image (Anchore Inc., 0.6.0)
  scan: Docker Scan (Docker Inc., v0.22.0)

Server:
 Containers: 0
  Running: 0
  Paused: 0
  Stopped: 0
 Images: 42
 Server Version: 20.10.21
 Storage Driver: overlay2
  Backing Filesystem: extfs
  Supports d_type: true
  Native Overlay Diff: true
  userxattr: false
 Logging Driver: json-file
 Cgroup Driver: cgroupfs
 Cgroup Version: 1
 Plugins:
  Volume: local
  Network: bridge host ipvlan macvlan null overlay
  Log: awslogs fluentd gcplogs gelf journald json-file local logentries splunk syslog
 Swarm: inactive
 Runtimes: runc io.containerd.runc.v2 io.containerd.runtime.v1.linux
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: 770bd0108c32f3fb5c73ae1264f7e503fe7b2661
 runc version: v1.1.4-0-g5fd4c4d
 init version: de40ad0
 Security Options:
  seccomp
   Profile: default
 Kernel Version: 5.10.102.1-microsoft-standard-WSL2
 Operating System: Docker Desktop
 OSType: linux
 Architecture: x86_64
 CPUs: 12
 Total Memory: 12.36GiB
 Name: docker-desktop
 ID: GMAT:ZHV5:2XGJ:WNFN:4D5L:HXBH:OKUT:GTEW:D7BU:5RPL:3IEW:7WAM
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 HTTP Proxy: http.docker.internal:3128
 HTTPS Proxy: http.docker.internal:3128
 No Proxy: hubproxy.docker.internal
 Registry: https://index.docker.io/v1/
 Labels:
 Experimental: false
 Insecure Registries:
  *xx.xx.xx.xx:xxxx*
  *xx.xx.xx.xx:xxxx*
  hubproxy.docker.internal:5000
  127.0.0.0/8
 Live Restore Enabled: false

WARNING: No blkio throttle.read_bps_device support
WARNING: No blkio throttle.write_bps_device support
WARNING: No blkio throttle.read_iops_device support
WARNING: No blkio throttle.write_iops_device support

My workstation is a Windows machine and has Docker Desktop installed. The target machine is a Linux VM, not sure how exactly Docker was installed there, but I suppose a standard way.