./docker-compose.yml is invalid because: Unsupported config option for services.app: 'db'

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I edited your post. Please, use code block next time. Here is how you can format your post properly:

Because the yaml is valid, but the indentation level is wrong so the db service is not a service but an option of the “app” service. This should work:

version: '3'
services:
  app:
    image: 'jc21/nginx-proxy-manager:latest'
    ports:
      - '80:80'
      - '81:81'
      - '443:443'
    environment:
      DB_MYSQL_HOST: "db"
      DB_MYSQL_PORT: 3306
      DB_MYSQL_USER: "npm"
      DB_MYSQL_PASSWORD: "npm"
      DB_MYSQL_NAME: "npm"
    volumes:
      - ./data:/data
      - ./letsencrypt:/etc/letsencrypt
  db:
    image: 'yobasystems/alpine-mariadb:10.4.17-arm32v7'
    environment:
      MYSQL_ROOT_PASSWORD: 'npm'
      MYSQL_DATABASE: 'npm'
      MYSQL_USER: 'npm'
      MYSQL_PASSWORD: 'npm'
    volumes:
      - ./data/mysql:/var/lib/mysql
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