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Running docker-compose from Eclipse docker-tooling throws errors

Hi,

I upgraded docker to the latest. I have docker desktop for mac 4.0.0. Engine 20.1.8 and compose 1.29.2
I am able to run docker-compose from command line but I am getting the errors below when trying docker-compose from Eclipse Docker tooling:

Traceback (most recent call last):
File “docker-compose”, line 3, in
File “compose/cli/main.py”, line 81, in main
File “compose/cli/main.py”, line 203, in perform_command
File “compose/metrics/decorator.py”, line 18, in wrapper
File “compose/cli/main.py”, line 1186, in up
File “compose/cli/main.py”, line 1166, in up
File “compose/project.py”, line 664, in up
File “compose/service.py”, line 364, in ensure_image_exists
File “compose/service.py”, line 1111, in build
File “compose/service.py”, line 1942, in build
File “subprocess.py”, line 947, in init
File “subprocess.py”, line 1819, in _execute_child
FileNotFoundError: [Errno 2] No such file or directory: ‘docker’
[69554] Failed to execute script docker-compose

Thank you, I really appreciate your help in this.