diff --git a/cmd/compose/compose.go b/cmd/compose/compose.go
index d2f8e98e9..c20d1507b 100644
--- a/cmd/compose/compose.go
+++ b/cmd/compose/compose.go
@@ -507,12 +507,8 @@ func setEnvWithDotEnv(prjOpts *ProjectOptions) error {
 	if err != nil {
 		return compose.WrapComposeError(err)
 	}
-	workingDir, err := options.GetWorkingDir()
-	if err != nil {
-		return err
-	}
 
-	envFromFile, err := dotenv.GetEnvFromFile(composegoutils.GetAsEqualsMap(os.Environ()), workingDir, options.EnvFiles)
+	envFromFile, err := dotenv.GetEnvFromFile(composegoutils.GetAsEqualsMap(os.Environ()), options.EnvFiles)
 	if err != nil {
 		return err
 	}
diff --git a/go.mod b/go.mod
index 7b6f23aa7..72cba3e11 100644
--- a/go.mod
+++ b/go.mod
@@ -6,7 +6,7 @@ require (
 	github.com/AlecAivazis/survey/v2 v2.3.7
 	github.com/Microsoft/go-winio v0.6.1
 	github.com/buger/goterm v1.0.4
-	github.com/compose-spec/compose-go/v2 v2.0.0-beta.1
+	github.com/compose-spec/compose-go/v2 v2.0.0-beta.2
 	github.com/containerd/console v1.0.3
 	github.com/containerd/containerd v1.7.11
 	github.com/davecgh/go-spew v1.1.1
diff --git a/go.sum b/go.sum
index 5543d148b..f04eeb0d2 100644
--- a/go.sum
+++ b/go.sum
@@ -86,8 +86,8 @@ github.com/cncf/xds/go v0.0.0-20230607035331-e9ce68804cb4 h1:/inchEIKaYC1Akx+H+g
 github.com/cncf/xds/go v0.0.0-20230607035331-e9ce68804cb4/go.mod h1:eXthEFrGJvWHgFFCl3hGmgk+/aYT6PnTQLykKQRLhEs=
 github.com/codahale/rfc6979 v0.0.0-20141003034818-6a90f24967eb h1:EDmT6Q9Zs+SbUoc7Ik9EfrFqcylYqgPZ9ANSbTAntnE=
 github.com/codahale/rfc6979 v0.0.0-20141003034818-6a90f24967eb/go.mod h1:ZjrT6AXHbDs86ZSdt/osfBi5qfexBrKUdONk989Wnk4=
-github.com/compose-spec/compose-go/v2 v2.0.0-beta.1 h1:/A+2QMQVSsAmr9Gn5fm6YwaufjRZmWBnHYjr0oCyGiw=
-github.com/compose-spec/compose-go/v2 v2.0.0-beta.1/go.mod h1:PWCgeD8cxiI/DmdpBM407CuLDrZ2W4xuS6/Z9jAi0YQ=
+github.com/compose-spec/compose-go/v2 v2.0.0-beta.2 h1:UrKM2RA9qel+EGsHvdK/0y6XA047iDuK75dJYHWXZnc=
+github.com/compose-spec/compose-go/v2 v2.0.0-beta.2/go.mod h1:PWCgeD8cxiI/DmdpBM407CuLDrZ2W4xuS6/Z9jAi0YQ=
 github.com/containerd/cgroups v1.1.0 h1:v8rEWFl6EoqHB+swVNjVoCJE8o3jX7e8nqBGPLaDFBM=
 github.com/containerd/cgroups v1.1.0/go.mod h1:6ppBcbh/NOOUU+dMKrykgaBnK9lCIBxHqJDGwsa1mIw=
 github.com/containerd/console v1.0.3 h1:lIr7SlA5PxZyMV30bDW0MGbiOPXwc63yRuCP0ARubLw=