env_file ignored for environment

[Vic-M]

Describe the bug
Although podman-compose passes the values in the env_file to the container, it ignores the value in the compose file

To Reproduce
.env

SOME_ENV_VALUE=qqq

docker-compose.yml

version: "3.8"

services:
  container:
    image: some_image
    env_file:
      - ./../.env
     environment:
      SOME_ENV: ${SOME_ENV_VALUE}

Expected behavior

root@7ad1edad1404:/var/www/html# echo $SOME_ENV
qqq
root@7ad1edad1404:/var/www/html# echo $SOME_ENV_VALUE
qqq

Actual behavior

root@7ad1edad1404:/var/www/html# echo $SOME_ENV

root@7ad1edad1404:/var/www/html# echo $SOME_ENV_VALUE
qqq

Output

podman-compose version
podman-compose version 1.0.7
podman version 4.9.3-dev

[mokibit]

As podman-compose closely emulates docker-compose, this is what documentation of docker-compose says regarding .env file, env_file:, environment and variable interpolation:
docker-compose only sets and interpolates environment variables from .env file used in compose.yml file by section env_file: if .env file is located in the same directory as compose.yml file itself.
Documented here:
https://docs.docker.com/compose/how-tos/environment-variables/variable-interpolation/#substitute-with---env-file
"The .env file should be placed at the root of the project directory next to your compose.yaml file. <...> If you define a variable in your .env file, you can reference it directly in your compose.yaml with the environment attribute."
I tested it with compose.yml file:

services:
  container:
    image: debian:bookworm
    env_file:
      - .env
    environment:
      SOME_ENV: ${SOME_ENV_VALUE}
    command: tail -F anything

.env file:

SOME_ENV_VALUE=qqq

and this directory structure:

path/to/docker-compose.yml
path/to/.env

Command docker-compose up -d was run, then docker exec -it <container-name> bin/bash. Output of env command inside container was as expected:

<...>
SOME_ENV=qqq
SOME_ENV_VALUE=qqq

If one wants to pass environment variable from .env file and use it directly in compose.yml file via interpolation, .envfile must be located relative to the location of compose.yml file.

[mokibit]

Running the same commands with same configuration gives the results confirming that podman-compose functions like docker-compose.
From podman-compose container environment command env outputs:

SOME_ENV=qqq
SOME_ENV_VALUE=qqq

My testing environment was:

Debian GNU/Linux 12 (bookworm)
Docker Compose version v2.37.2
Docker version 28.2.2, build e6534b4

podman version: 4.9.3
podman-compose version: 1.4.0

@p12tic this issue can be closed.

[p12tic]

Unfortunately the above comments do not have any data that user's configuration was invalid. If docker-compose works with user's configuration, podman compose should mimic it.

[Vic-M]

@mokibit is correct that podman-compose follows docker-compose's behavior. My issue exists even with docker-compose.