Client sent an HTTP request to an HTTPS server. Docker-Compose with Docker-Machine

I'm trying to run docker-compose on DigitalOcean droplet using docker-machine.

1. I've created a dropled and used docker-machine create to hook it up to the docker-machine.
2. I can connect via docker-machine ssh my-machine
3. I use eval $(docker-machine env wdf-rails) to run docker commands in the proper context
4. docker ps does not return error, but docker-compose ps returns the error:

ERROR: Client sent an HTTP request to an HTTPS server.

I've been using this setup for years and I've never experienced this issue before.

Notes:

It doesn't matter what configuration you have in the docker-compose.yml. Fails even for such a minimal config as listed below:

version: "3.7"

services:
  redis:
    image: "redis:alpine"