### 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
name=self.name,
                entrypoint=self.entrypoint or None,
                remove=self.remove,
                interactive=self.interactive,
                tty=self.tty,
                detach=self.detach,
                command=self.command or None,
                mount_volumes=self._get_mount_volumes(),
                ports=self.ports,
                env_vars=self.env_vars,
                user=self.user,
                cap_add=self.cap_add,
                network=self.network,
                dns=self.dns,
                additional_flags=" ".join(self.additional_flags),
                workdir=self.workdir,
                privileged=self.privileged,
            )
        except ContainerException as e:
            if LOG.isEnabledFor(logging.DEBUG):
                LOG.exception("Error while starting LocalStack container")
            else:
                LOG.error(
                    "Error while starting LocalStack container: %s\n%s", e.message, to_str(e.stderr)
                )
            raise
    def truncate_log(self):
        with open(self.logfile, "wb") as fd:
            fd.write(b"")
class LocalstackContainerServer(Server):