As stated in this tutorial on microsoft docs, you can deploy a group of Azure Container Instance using either
- Azure Resource Manager
- Docker compose using Docker CLI
As highlighted in the tutorial, in order to deploy using docker cli, you need to
- login into Azure using docker CLI
- create an Azure Container Instance docker context
This page from Docker site, describes the integration.
This page describes the support level for each feature of Docker-Compose.
docker compose up
to start Azure Container Instance and not docker-compose up !
Azure Files Shares can be used as Volume.
Hope this helps !