Permission denied on .env file

I have installed docker and docker-compose on Ubuntu 22.04.3 LTS.

Have created new user (octopus) and added to sudo and docker groups.
if I use the command cat .env, then I can see the content of the file.

when I run docker-compose up -d OR sudo docker-compose up -d I get the error below

open /home/octopus/.octopus/Applications/OctopusServer/Test/Docker-MaxWellAndRabbitMQConfig/1.1.1.38_2/.env: permission denied

drwxr-xr-x root root /
drwxr-xr-x root root home
drwxr-xr-x octopus octopus octopus
drwxrwxr-x octopus octopus .octopus
drwxrwxr-x octopus octopus Applications
drwxrwxr-x octopus octopus OctopusServer
drwxrwxr-x octopus octopus Test
drwxrwxr-x octopus octopus Docker-MaxWellAndRabbitMQConfig
drwxrwxr-x octopus octopus 1.1.1.38_2
-rw-rw-r-- octopus octopus .env

This was solved by running V2 of docker compose.