[BUG] privileged:true does not work in docker compose but works with docker run

[adonh]

Description

docker run --privileged works fine while docker compose that has a privileged: true statement does NOT.

Steps To Reproduce

Dockerfile:

FROM ubuntu:noble AS base

RUN apt-get update
RUN apt-get install -y --no-install-recommends \
        netbase \
        nfs-common \
        nfs-kernel-server
RUN /bin/mkdir -p /export/data

RUN /bin/echo '/export/data *(rw,sync,insecure,fsid=0,no_subtree_check,no_root_squash)' | /usr/bin/tee /etc/exports
RUN /bin/echo 'NEED_SVCGSSD=no' | /usr/bin/tee -a /etc/default/nfs-kernel-server

RUN /bin/echo '/usr/sbin/rpcbind && /usr/sbin/service nfs-kernel-server start && /usr/bin/sleep infinity' > \
        /root/go.sh && \
    /bin/chmod +x /root/go.sh

VOLUME /export/data

EXPOSE 111/udp 2049/tcp

CMD ["/bin/bash", "-c", "/root/go.sh"]

docker-compose.yaml:

services:
  nfslite:
    image: nfslite
    privileged: true
    build:
      context: .
      dockerfile: Dockerfile
    container_name: nfslite
    cap_add:
      - NET_BIND_SERVICE

> docker compose up
[+] Running 1/1r Desktop   o View Config   w Enable Watch
 ✔ Container nfslite  Created                                                                                                                                                                                                                   0.0s
Attaching to nfslite
nfslite  |  * Exporting directories for NFS kernel daemon...
nfslite  | exportfs: /export/data does not support NFS export
nfslite  |    ...fail!
nfslite exited with code 1

> docker run --privileged --name nfslite nfslite
 * Exporting directories for NFS kernel daemon...
   ...done.
 * Starting NFS kernel daemon
   ...done.

Compose Version

> docker compose version
Docker Compose version 2.34.0



> docker-compose version
Docker Compose version 2.34.0

Docker Environment

> docker info
Client:
 Version:    28.0.1
 Context:    desktop-linux
 Debug Mode: false
 Plugins:
  ai: Docker AI Agent - Ask Gordon (Docker Inc.)
    Version:  v0.9.4
    Path:     /Users/.../.docker/cli-plugins/docker-ai
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.21.1-desktop.2
    Path:     /Users/.../.docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  2.34.0
    Path:     /opt/homebrew/lib/docker/cli-plugins/docker-compose
  debug: Get a shell into any image or container (Docker Inc.)
    Version:  0.0.38
    Path:     /Users/.../.docker/cli-plugins/docker-debug
  desktop: Docker Desktop commands (Beta) (Docker Inc.)
    Version:  v0.1.5
    Path:     /Users/.../.docker/cli-plugins/docker-desktop
  dev: Docker Dev Environments (Docker Inc.)
    Version:  v0.1.2
    Path:     /Users/.../.docker/cli-plugins/docker-dev
  extension: Manages Docker extensions (Docker Inc.)
    Version:  v0.2.27
    Path:     /Users/.../.docker/cli-plugins/docker-extension
  feedback: Provide feedback, right in your terminal! (Docker Inc.)
    Version:  v1.0.5
    Path:     /Users/.../.docker/cli-plugins/docker-feedback
  init: Creates Docker-related starter files for your project (Docker Inc.)
    Version:  v1.4.0
    Path:     /Users/.../.docker/cli-plugins/docker-init
  sbom: View the packaged-based Software Bill Of Materials (SBOM) for an image (Anchore Inc.)
    Version:  0.6.0
    Path:     /Users/.../.docker/cli-plugins/docker-sbom
  scout: Docker Scout (Docker Inc.)
    Version:  v1.16.3
    Path:     /Users/.../.docker/cli-plugins/docker-scout

Server:
 Containers: 3
  Running: 1
  Paused: 0
  Stopped: 2
 Images: 12
 Server Version: 28.0.1
 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: cgroupfs
 Cgroup Version: 2
 Plugins:
  Volume: local
  Network: bridge host ipvlan macvlan null overlay
  Log: awslogs fluentd gcplogs gelf journald json-file local splunk syslog
 CDI spec directories:
  /etc/cdi
  /var/run/cdi
 Swarm: inactive
 Runtimes: runc io.containerd.runc.v2
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: bcc810d6b9066471b0b6fa75f557a15a1cbf31bb
 runc version: v1.2.4-0-g6c52b3f
 init version: de40ad0
 Security Options:
  seccomp
   Profile: unconfined
  cgroupns
 Kernel Version: 6.10.14-linuxkit
 Operating System: Docker Desktop
 OSType: linux
 Architecture: aarch64
 CPUs: 12
 Total Memory: 23.43GiB
 Name: docker-desktop
 ID: 42d4fc00-...
 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
 Labels:
  com.docker.desktop.address=unix:///Users/.../Library/Containers/com.docker.docker/Data/docker-cli.sock
 Experimental: false
 Insecure Registries:
  hubproxy.docker.internal:5555
  ::1/128
  127.0.0.0/8
 Live Restore Enabled: false

WARNING: daemon is not using the default seccomp profile

Anything else?

No response

[ndeloof]

I can't reproduce:

 ✔ nfslite            Built                                                0.0s 
 ✔ Container nfslite  Created                                              0.2s 
Attaching to nfslite
nfslite  |  * Exporting directories for NFS kernel daemon...
nfslite  |    ...done.
nfslite  |  * Starting NFS kernel daemon
nfslite  |    ...done.

Can you please run docker inspect nfslite to check container configuration is correct ? I get the expected

            "CapAdd": [
                "CAP_NET_BIND_SERVICE"
            ],
...
            "Privileged": true,