I ran into this when trying to run the development setup for the first time.
The makefile uses the standalone docker-compose command which is now deprecated (some more information here and here)

If you're running a more recent version of Docker, it's better to use the built-in plugin, i.e., docker compose ... instead.

This should in theory be a drop-in replacement - as a test I tried replacing all instances of docker-compose in the makefile with docker compose and the website builds without issues.