Getting an error running project using podman on vscode

Project Structure

projectname
|
|----.devcontainer
|        |
|        |-----devcontainer.json
|        |-----docker-compose.yml
|        |-----Dockerfile
├─ src
│  ├─ __init__.py
│  ├─ __pycache__
│  └─ app
│     ├─ __init__.py
│     ├─ __pycache__
│     ├─ api
│     │  ├─ __init__.py
│     │  ├─ __pycache__
│     │  ├─ router.py

I was earlier working with docker and it worked fine. Migrating to podman fails.

Updated devcontainer.json
{
    "name": "Python serverless FastAPI",
    "dockerComposeFile": "docker-compose.yml",
    "service": "app",
    "workspaceFolder": "/workspaces/${localWorkspaceFolderBasename}",
    "features": {
        "ghcr.io/devcontainers/features/docker-in-docker:2": {
            "engine": "podman"
        },
        "ghcr.io/devcontainers-contrib/features/poetry:2": {
            "version": "1.3.2"
        },
        "ghcr.io/devcontainers-contrib/features/pre-commit:2": {
            "version": "2.21.0"
        }
    },
    "postCreateCommand": "make setup",
    "remoteUser": "vscode",
    "mounts": [
        "source=${env:HOME}/.aws,target=/home/vscode/.aws,type=bind,",
        "source=${env:HOME}/.ssh,target=/home/vscode/.ssh,type=bind"
    ]
}

Getting an error :

Error: executing /usr/local/bin/docker-compose --project-name projectname_devcontainer -f /Users/$usrname/Projects/projectname/.devcontainer/docker-compose.yml -f /Users/$usrname/Library/Application Support/Code/User/globalStorage/ms-vscode-remote.remote-containers/data/docker-compose/docker-compose.devcontainer.build-1739547496527.yml build: exit status 1
1740056373 Stop (299464 ms): Run: podman compose --project-name projectname_devcontainer -f /Users/$usrname/Projects/projectname/.devcontainer/docker-compose.yml -f /Users/$usrname/Library/Application Support/Code/User/globalStorage/ms-vscode-remote.remote-containers/data/docker-compose/docker-compose.devcontainer.build-1739547496527.yml build
1740056373 Error: Command failed: podman compose --project-name projectname_devcontainer -f /Users/$usrname/Projects/projectname/.devcontainer/docker-compose.yml -f /Users/$usrname/Library/Application Support/Code/User/globalStorage/ms-vscode-remote.remote-containers/data/docker-compose/docker-compose.devcontainer.build-1739547496527.yml build
1740056373     at Tm (/Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:433:525)
1740056373     at async ftA (/Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:433:2476)
1740056373     at async htA (/Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:413:3496)
1740056373     at async TtA (/Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:485:4021)
1740056373     at async iB (/Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:485:4963)
1740056373     at async wrA (/Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:666:203)
1740056373     at async DrA (/Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:665:14830)
1740056373     at async /Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js:485:1190
1740056373 Stop (303772 ms): Run: /private/var/folders/6h/j2nhfnfx03v5k685_h4hnphmt24_p1/T/AppTranslocation/51D33A69-98FE-4891-90DB-BDD099E6E5F4/d/Visual Studio Code 2.app/Contents/Frameworks/Code Helper (Plugin).app/Contents/MacOS/Code Helper (Plugin) /Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js up --user-data-folder /Users/$usrname/Library/Application Support/Code/User/globalStorage/ms-vscode-remote.remote-containers/data --docker-path podman --docker-compose-path podman --container-session-data-folder /tmp/devcontainers-e5c55b76-6f1b-4dd1-8c6d-b280edcb11ab1739547490930 --workspace-folder /Users/$usrname/Projects/projectname --workspace-mount-consistency cached --gpu-availability detect --id-label devcontainer.local_folder=/Users/$usrname/Projects/projectname --id-label devcontainer.config_file=/Users/$usrname/Projects/projectname/.devcontainer/devcontainer.json --log-level debug --log-format json --config /Users/$usrname/Projects/projectname/.devcontainer/devcontainer.json --default-user-env-probe loginInteractiveShell --mount type=volume,source=vscode,target=/vscode,external=true --skip-post-create --update-remote-user-uid-default on --mount-workspace-git-root --include-configuration --include-merged-configuration
1740056373 Exit code 1
1740056373 Command failed: /private/var/folders/6h/j2nhfnfx03v5k685_h4hnphmt24_p1/T/AppTranslocation/51D33A69-98FE-4891-90DB-BDD099E6E5F4/d/Visual Studio Code 2.app/Contents/Frameworks/Code Helper (Plugin).app/Contents/MacOS/Code Helper (Plugin) /Users/$usrname/.vscode/extensions/ms-vscode-remote.remote-containers-0.397.0/dist/spec-node/devContainersSpecCLI.js up --user-data-folder /Users/$usrname/Library/Application Support/Code/User/globalStorage/ms-vscode-remote.remote-containers/data --docker-path podman --docker-compose-path podman --container-session-data-folder /tmp/devcontainers-e5c55b76-6f1b-4dd1-8c6d-b280edcb11ab1739547490930 --workspace-folder /Users/$usrname/Projects/projectname --workspace-mount-consistency cached --gpu-availability detect --id-label devcontainer.local_folder=/Users/$usrname/Projects/projectname --id-label devcontainer.config_file=/Users/$usrname/Projects/projectname/.devcontainer/devcontainer.json --log-level debug --log-format json --config /Users/$usrname/Projects/projectname/.devcontainer/devcontainer.json --default-user-env-probe loginInteractiveShell --mount type=volume,source=vscode,target=/vscode,external=true --skip-post-create --update-remote-user-uid-default on --mount-workspace-git-root --include-configuration --include-merged-configuration
1740056373 Exit code 1

How can I resolve it ?