Docker Compose does not allow to use local images

In general, this should work as you describe it. Tried to reproduce it, but it simply worked…

Folder structure:

.
├── docker-compose.yml
└── Dockerfile

Content of Dockerfile:

FROM alpine
CMD ["echo", "i am groot"]

Build and tag image:

docker build -t groot .
docker tag groot:latest groot:staging

with docker-compose.yml:

version: '3.1'
services:
  groot:
    image: groot:staging

and start docker-compose:

$ docker-compose up
Creating groot_groot ... 
Creating groot_groot_1 ... done
Attaching to groot_groot_1
groot_1  | i am groot
groot_groot_1 exited with code 0