I know the topic is a bit old and seems stale, but anyway I was able to use these options:
when using 3.7 version of docker-compose
What helped in my case, was using this command:
docker-compose --compatibility up
--compatibility flag stands for (taken from the documentation):
If set, Compose will attempt to convert deploy keys in v3 files to
their non-Swarm equivalent
Think it's great, that I don't have to revert my docker-compose file back to v2.