Dockerized FastAPI autoreload faulty

I put together a FastAPI using docker-compose. So far it has been working nicely, but at some point the autoreload feature just stopped working, which slows down development - now it only detects changes after one minute or longer.

I have no clue what might have caused this behavior, I have not edited any of the docker settings, I have even gone back to previously working git-branches and rebuilt the images from scratch. I think it might be related to a recent Docker Desktop update - in that case, is there a way to revert to the previous working state?

This is my dc

version: "3"

services:

  api:
    build: 
      context: ./app
    env_file:
      - ./.env
    command: bash -c "uvicorn app.main:app --host 0.0.0.0 --port 8000 --reload"
    volumes:
      - .:/code
    ports:
      - "8000:8000"

...and my Dockerfile

FROM python:3.7

ENV PYTHONDONTWRITEBYTECODE 1
ENV PYTHONUNBUFFERED 1
ENV CODE_SRC=app

WORKDIR /code/

ENV PATH=$PATH:/code/
ENV PYTHONPATH=$PYTHONPATH:/code/
ENV REQUIRED_PACKAGES git pkg-config

COPY pyproject.toml poetry.lock ./

RUN set -ex; \
    apt-get update ; \
    apt-get install -y --no-install-recommends $REQUIRED_PACKAGES ; \
    pip install poetry ; \
    poetry config virtualenvs.create false ; \
    poetry install --no-interaction --no-ansi ; \
    apt-get autoremove -y ; \
    apt-get clean -y ; \
    rm -rf /var/lib/apt/lists/*

COPY . .

EXPOSE 8000

Docker desktop for windows version.

Thanks,