What is the difference between docker-compose v2 (Compose CLI) and v1 (docker-compose) and what improvements were introduced?

Question

Docker Fundamentals — Hard

What is the difference between docker-compose v2 (Compose CLI) and v1 (docker-compose) and what improvements were introduced?

Accepted Answer

Compose v2 (docker compose as a Docker CLI plugin) offers improved performance, BuildKit integration, and selective service startup profiles, while v1 (Python-based docker-compose) is deprecated.