Mounts denied: EOF with Docker Compose

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I'm using Docker Compose to run some code, but when I run docker-compose up I get the following error:

ERROR: for app  Cannot start service app: Mounts denied: EOF
ERROR: Encountered errors while bringing up the project.

The only mounts are relative and just to check I added the project folder under file sharing in Docker settings. Here's a relevant section in docker-compose.yml:

volumes:
  - .:/opt/app:delegated
  - .npm_cache:/root/.npm
  - .yarn-cache:/root/.yarn-cache
  - node_modules:/opt/app/node_modules

Anyone have any ideas why this is happening? I was able to run the same project earlier on a different computer but I'm not sure what's different about this environment.

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