### Is there an existing issue for this?

- [X] I have searched the existing issues

### Current Behavior

- following the [installation steps](https://docs.localstack.cloud/getting-started/installation/) fails when validating localstack configuration

- error
![image](https://github.com/localstack/localstack/assets/10324554/d82ef62e-c8b8-402e-8195-e691733cfeb1)

- localstack is indeed running
![image](https://github.com/localstack/localstack/assets/10324554/44d7180a-5090-416d-afa9-c4eaaedca33e)


### Expected Behavior

- localstack can consume the path I pass `--file`

### How are you starting LocalStack?

With a docker-compose file

### Steps To Reproduce

#### How are you starting localstack (e.g., `bin/localstack` command, arguments, or `docker-compose.yml`)

    docker compose up -d
    localstack config validate --file ./compose.yaml


### Environment

```markdown
OS: Ubuntu 20.04
    LocalStack: latest
```


### Anything else?

- you can reproduce [on this branch](https://github.com/noahehall/localstack/tree/rds) if it still exists
  - else switch to the develop branch
"""
    Prepare the host environment for running LocalStack, this should be called before start_infra_*.
    """
    if os.environ.get(constants.LOCALSTACK_INFRA_PROCESS) in constants.TRUE_STRINGS:
        return
    try:
        mkdir(config.VOLUME_DIR)
    except Exception as e:
        console.print(f"Error while creating volume dir {config.VOLUME_DIR}: {e}")
        if config.DEBUG:
            console.print_exception()
    setup_logging()
    hooks.prepare_host.run()
def start_infra_in_docker():
    prepare_docker_start()
    container = LocalstackContainer()
    
    configure_container(container)
    container.truncate_log()
    
    log_printer = FileListener(container.logfile, print)
    log_printer.start()
    
    
    
    
    
    
    def shutdown_handler(*args):