[BUG] docker compose watch does not sync changes to container

[wkirby]

Description

Using the example repo, changes to the python code do not have any effect on the running application.

Steps To Reproduce

1. Clone the example repository for compose watch
2. Run docker compose watch
3. Load http://localhost:5734/api/avatar in the browser, observe that an avatar is generated
4. Open api/app.py and edit the background_color attribute on line 74 from #03C7D3 to another valid hex code
5. Observe terminal output Syncing "api" after changes were detected
6. Refresh http://localhost:5734/api/avatar, observe that the avatar is unchanged

Expected behavior: the synced file will have updated and the avatar's color will change to the new value.

Compose Version

Docker Compose version v2.29.1-desktop.1

Docker Environment

Client:
 Version:    27.1.1
 Context:    desktop-linux
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.16.1-desktop.1
    Path:     /Users/wyatt/.docker/cli-plugins/docker-buildx
  compose: Docker Compose (Docker Inc.)
    Version:  v2.29.1-desktop.1
    Path:     /Users/wyatt/.docker/cli-plugins/docker-compose
  debug: Get a shell into any image or container (Docker Inc.)
    Version:  0.0.34
    Path:     /Users/wyatt/.docker/cli-plugins/docker-debug
  desktop: Docker Desktop commands (Alpha) (Docker Inc.)
    Version:  v0.0.14
    Path:     /Users/wyatt/.docker/cli-plugins/docker-desktop
  dev: Docker Dev Environments (Docker Inc.)
    Version:  v0.1.2
    Path:     /Users/wyatt/.docker/cli-plugins/docker-dev
  extension: Manages Docker extensions (Docker Inc.)
    Version:  v0.2.25
    Path:     /Users/wyatt/.docker/cli-plugins/docker-extension
  feedback: Provide feedback, right in your terminal! (Docker Inc.)
    Version:  v1.0.5
    Path:     /Users/wyatt/.docker/cli-plugins/docker-feedback
  init: Creates Docker-related starter files for your project (Docker Inc.)
    Version:  v1.3.0
    Path:     /Users/wyatt/.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/wyatt/.docker/cli-plugins/docker-sbom
  scout: Docker Scout (Docker Inc.)
    Version:  v1.11.0
    Path:     /Users/wyatt/.docker/cli-plugins/docker-scout

Server:
 Containers: 2
  Running: 2
  Paused: 0
  Stopped: 0
 Images: 2
 Server Version: 27.1.1
 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
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 runc
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: 2bf793ef6dc9a18e00cb12efb64355c2c9d5eb41
 runc version: v1.1.13-0-g58aa920
 init version: de40ad0
 Security Options:
  seccomp
   Profile: unconfined
  cgroupns
 Kernel Version: 6.10.0-linuxkit
 Operating System: Docker Desktop
 OSType: linux
 Architecture: aarch64
 CPUs: 10
 Total Memory: 7.655GiB
 Name: docker-desktop
 ID: 9c1a6163-eae2-4bb9-9022-dbe8eafc4f4c
 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/wyatt/Library/Containers/com.docker.docker/Data/docker-cli.sock
 Experimental: false
 Insecure Registries:
  hubproxy.docker.internal:5555
  127.0.0.0/8
 Live Restore Enabled: false

WARNING: daemon is not using the default seccomp profile

Anything else?

No response