compose: Unable to mount volumes on Windows 10: UnboundLocalError: local variable 'cells_to_erase' referenced before assignment

I am getting a persistent error on docker-compose up. I am getting the same error on two different Windows 10 Pro machines.

Traceback (most recent call last):
  File "docker-compose", line 6, in <module>
  File "compose\cli\main.py", line 68, in main
  File "compose\cli\main.py", line 121, in perform_command
  File "compose\cli\main.py", line 954, in up
  File "compose\cli\log_printer.py", line 105, in run
  File "compose\cli\log_printer.py", line 109, in write
  File "codecs.py", line 370, in write
  File "site-packages\colorama\ansitowin32.py", line 40, in write
  File "site-packages\colorama\ansitowin32.py", line 141, in write
  File "site-packages\colorama\ansitowin32.py", line 167, in write_and_convert
  File "site-packages\colorama\ansitowin32.py", line 181, in convert_ansi
  File "site-packages\colorama\ansitowin32.py", line 212, in call_win32
  File "site-packages\colorama\winterm.py", line 132, in erase_screen
UnboundLocalError: local variable 'cells_to_erase' referenced before assignment
Failed to execute script docker-compose

After the error the port is open and the application is running, but the volumes are not mounted. Here is my setup:

• Edition: Windows 10 Pro

• Version: 1703

• OS Build 15063.674

• Docker version 17.09.0-ce, build afdb6d4

• docker-compose version 1.16.1, build 6d1ac219

Dockerfile

# Use an official Ubuntu Xenial as a parent image
FROM ubuntu:16.04

# Install Node.js 8 and npm 5
RUN apt-get update
RUN apt-get -qq upgrade
RUN apt-get install -y build-essential
RUN apt-get install -y curl
RUN curl -sL https://deb.nodesource.com/setup_8.x | bash
RUN apt-get install -y nodejs

# Set the working directory to /pretty-prism
WORKDIR /pretty-prism

# Copy the package.json into the container at /pretty-prism
COPY package.json /pretty-prism

# Install any needed packages specified in package.json
RUN npm install

# Define environment variable

# Make port 8080 available to the world outside this container
EXPOSE 8080

# Run `npm start` when the container launches
CMD ["npm", "start"]

docker-compose.yml

version: '3'
services:
  preact:
    build: .
    command: npm start
    ports:
      - "8080:8080"
    volumes:
      - .:/pretty-prism