diff --git a/src/docker-in-docker/devcontainer-feature.json b/src/docker-in-docker/devcontainer-feature.json
index 334982161..db6156a8a 100644
--- a/src/docker-in-docker/devcontainer-feature.json
+++ b/src/docker-in-docker/devcontainer-feature.json
@@ -1,6 +1,6 @@
 {
     "id": "docker-in-docker",
-    "version": "2.2.1",
+    "version": "3.0.0",
     "name": "Docker (Docker-in-Docker)",
     "documentationURL": "https://github.com/devcontainers/features/tree/main/src/docker-in-docker",
     "description": "Create child containers *inside* a container, independent from the host's docker instance. Installs Docker extension in the container along with needed CLIs.",
@@ -22,13 +22,14 @@
         },
         "dockerDashComposeVersion": {
             "type": "string",
-            "enum": [
-                "none",
-                "v1",
-                "v2"
+            "proposals": [
+                "latest",
+                "2.20.2",
+                "2.20",
+                "2"
             ],
-            "default": "v1",
-            "description": "Default version of Docker Compose (v1 or v2 or none)"
+            "default": "latest",
+            "description": "Select or enter a Docker Compose version"
         },
         "azureDnsAutoDetection": {
             "type": "boolean",
diff --git a/src/docker-in-docker/install.sh b/src/docker-in-docker/install.sh
index 6c889f5ac..da57b8bc7 100755
--- a/src/docker-in-docker/install.sh
+++ b/src/docker-in-docker/install.sh
@@ -10,7 +10,7 @@
 
 DOCKER_VERSION="${VERSION:-"latest"}" # The Docker/Moby Engine + CLI should match in version
 USE_MOBY="${MOBY:-"true"}"
-DOCKER_DASH_COMPOSE_VERSION="${DOCKERDASHCOMPOSEVERSION:-"v1"}" # v1 or v2 or none
+DOCKER_DASH_COMPOSE_VERSION="${DOCKERDASHCOMPOSEVERSION:-"latest"}"
 AZURE_DNS_AUTO_DETECTION="${AZUREDNSAUTODETECTION:-"true"}"
 DOCKER_DEFAULT_ADDRESS_POOL="${DOCKERDEFAULTADDRESSPOOL}"
 USERNAME="${USERNAME:-"${_REMOTE_USER:-"automatic"}"}"
@@ -244,73 +244,31 @@ echo "Finished installing docker / moby!"
 
 # If 'docker-compose' command is to be included
 if [ "${DOCKER_DASH_COMPOSE_VERSION}" != "none" ]; then
-    # Install Docker Compose if not already installed and is on a supported architecture
-    if type docker-compose > /dev/null 2>&1; then
-        echo "Docker Compose v1 already installed."
-    else
-        target_compose_arch="${architecture}"
-        if [ "${target_compose_arch}" = "amd64" ]; then
-            target_compose_arch="x86_64"
-        fi
-        if [ "${target_compose_arch}" != "x86_64" ]; then
-            # Use pip to get a version that runs on this architecture
-            check_packages python3-minimal python3-pip libffi-dev python3-venv
-            export PIPX_HOME=/usr/local/pipx
-            mkdir -p ${PIPX_HOME}
-            export PIPX_BIN_DIR=/usr/local/bin
-            export PYTHONUSERBASE=/tmp/pip-tmp
-            export PIP_CACHE_DIR=/tmp/pip-tmp/cache
-            pipx_bin=pipx
-            if ! type pipx > /dev/null 2>&1; then
-                pip3 install --disable-pip-version-check --no-cache-dir --user pipx
-                pipx_bin=/tmp/pip-tmp/bin/pipx
-            fi
-
-            set +e
-                ${pipx_bin} install --pip-args '--no-cache-dir --force-reinstall' docker-compose
-                exit_code=$?
-            set -e
 
-            if [ ${exit_code} -ne 0 ]; then
-                # Temporary: https://github.com/devcontainers/features/issues/616
-                # See https://github.com/yaml/pyyaml/issues/601
-                echo "(*) Failed to install docker-compose via pipx. Trying via pip3..."
-
-                export PYTHONUSERBASE=/usr/local
-                pip3 install --disable-pip-version-check --no-cache-dir --user "Cython<3.0" pyyaml wheel docker-compose --no-build-isolation
-            fi
+    dockerComposeMajorVersion="$(echo ${DOCKER_DASH_COMPOSE_VERSION} | grep -oE '^[0-9]+' || echo '')"
 
-            rm -rf /tmp/pip-tmp
-        else
-            compose_v1_version="1"
-            find_version_from_git_tags compose_v1_version "https://github.com/docker/compose" "tags/"
-            echo "(*) Installing docker-compose ${compose_v1_version}..."
-            curl -fsSL "https://github.com/docker/compose/releases/download/${compose_v1_version}/docker-compose-Linux-x86_64" -o /usr/local/bin/docker-compose
-            chmod +x /usr/local/bin/docker-compose
-        fi
+    if [ "${dockerComposeMajorVersion}" = "1" ]; then
+        echo "(!) docker-compose v1 is not supported. To use docker-compose, set the DOCKER_DASH_COMPOSE_VERSION feature option to a v2 version (eg: 2.0.0)"
+        exit 1
     fi
 
-    # Install docker-compose switch if not already installed - https://github.com/docker/compose-switch#manual-installation
-    current_v1_compose_path="$(which docker-compose)"
-    target_v1_compose_path="$(dirname "${current_v1_compose_path}")/docker-compose-v1"
-    if ! type compose-switch > /dev/null 2>&1; then
-        echo "(*) Installing compose-switch..."
-        compose_switch_version="latest"
-        find_version_from_git_tags compose_switch_version "https://github.com/docker/compose-switch"
-        curl -fsSL "https://github.com/docker/compose-switch/releases/download/v${compose_switch_version}/docker-compose-linux-${architecture}" -o /usr/local/bin/compose-switch
-        chmod +x /usr/local/bin/compose-switch
-        # TODO: Verify checksum once available: https://github.com/docker/compose-switch/issues/11
-
-        # Setup v1 CLI as alternative in addition to compose-switch (which maps to v2)
-        mv "${current_v1_compose_path}" "${target_v1_compose_path}"
-        update-alternatives --install /usr/local/bin/docker-compose docker-compose /usr/local/bin/compose-switch 99
-        update-alternatives --install /usr/local/bin/docker-compose docker-compose "${target_v1_compose_path}" 1
-    fi
-    if [ "${DOCKER_DASH_COMPOSE_VERSION}" = "v1" ]; then
-        update-alternatives --set docker-compose "${target_v1_compose_path}"
+    if [ "${architecture}" = "amd64" ]; then
+        dockerComposeArch="x86_64"
+    elif [ "${architecture}" == "arm64" ]; then
+        dockerComposeArch="aarch64"
     else
-        update-alternatives --set docker-compose /usr/local/bin/compose-switch
+        echo "(!) Architecture ${architecture} unsupported"
+        exit 1
     fi
+
+    find_version_from_git_tags DOCKER_DASH_COMPOSE_VERSION "https://github.com/docker/compose" "refs/tags/v"
+    
+    echo "(*) Installing docker-compose ${DOCKER_DASH_COMPOSE_VERSION}..."
+
+    curl --location https://github.com/docker/compose/releases/download/v${DOCKER_DASH_COMPOSE_VERSION}/docker-compose-linux-${dockerComposeArch} \
+        --output /usr/local/bin/docker-compose
+
+    chmod +x /usr/local/bin/docker-compose
 fi
 
 # If init file already exists, exit
diff --git a/src/docker-outside-of-docker/devcontainer-feature.json b/src/docker-outside-of-docker/devcontainer-feature.json
index d3123fabe..d61993bdd 100644
--- a/src/docker-outside-of-docker/devcontainer-feature.json
+++ b/src/docker-outside-of-docker/devcontainer-feature.json
@@ -1,6 +1,6 @@
 {
     "id": "docker-outside-of-docker",
-    "version": "1.3.0",
+    "version": "2.0.0",
     "name": "Docker (docker-outside-of-docker)",
     "documentationURL": "https://github.com/devcontainers/features/tree/main/src/docker-outside-of-docker",
     "description": "Re-use the host docker socket, adding the Docker CLI to a container. Feature invokes a script to enable using a forwarded Docker socket within a container to run Docker commands.",
@@ -24,11 +24,10 @@
             "type": "string",
             "enum": [
                 "none",
-                "v1",
-                "v2"
+                "latest"
             ],
-            "default": "v2",
-            "description": "Compose version to use for docker-compose (v1 or v2 or none)"
+            "default": "latest",
+            "description": "Default version of Docker Compose (latest, none or specific version number e.g. 2.20.2)"
         },
         "installDockerBuildx": {
             "type": "boolean",
diff --git a/src/docker-outside-of-docker/install.sh b/src/docker-outside-of-docker/install.sh
index 7bf2138b4..88c488e99 100755
--- a/src/docker-outside-of-docker/install.sh
+++ b/src/docker-outside-of-docker/install.sh
@@ -218,44 +218,25 @@ fi
 
 # If 'docker-compose' command is to be included
 if [ "${DOCKER_DASH_COMPOSE_VERSION}" != "none" ]; then
-    # Install Docker Compose if not already installed  and is on a supported architecture
-    if type docker-compose > /dev/null 2>&1; then
-        echo "Docker Compose already installed."
-    elif [ "${DOCKER_DASH_COMPOSE_VERSION}" = "v1" ]; then
-        TARGET_COMPOSE_ARCH="$(uname -m)"
-        if [ "${TARGET_COMPOSE_ARCH}" = "amd64" ]; then
-            TARGET_COMPOSE_ARCH="x86_64"
-        fi
-        if [ "${TARGET_COMPOSE_ARCH}" != "x86_64" ]; then
-            # Use pip to get a version that runs on this architecture
-            check_packages python3-minimal python3-pip libffi-dev python3-venv
-            export PIPX_HOME=/usr/local/pipx
-            mkdir -p ${PIPX_HOME}
-            export PIPX_BIN_DIR=/usr/local/bin
-            export PYTHONUSERBASE=/tmp/pip-tmp
-            export PIP_CACHE_DIR=/tmp/pip-tmp/cache
-            pipx_bin=pipx
-            if ! type pipx > /dev/null 2>&1; then
-                pip3 install --disable-pip-version-check --no-cache-dir --user pipx
-                pipx_bin=/tmp/pip-tmp/bin/pipx
-            fi
-            ${pipx_bin} install --pip-args '--no-cache-dir --force-reinstall' docker-compose
-            rm -rf /tmp/pip-tmp
-        else
-            compose_v1_version="1"
-            find_version_from_git_tags compose_v1_version "https://github.com/docker/compose" "tags/"
-            echo "(*) Installing docker-compose ${compose_v1_version}..."
-            curl -fsSL "https://github.com/docker/compose/releases/download/${compose_v1_version}/docker-compose-Linux-x86_64" -o /usr/local/bin/docker-compose
-            chmod +x /usr/local/bin/docker-compose
-        fi
+    if [ "${architecture}" == "amd64" ]; then
+        dockerComposeArch="x86_64"
+    elif [ "${architecture}" == "arm64" ]; then
+        dockerComposeArch="aarch64"
+    fi
+
+    if [ "${DOCKER_DASH_COMPOSE_VERSION}" == "latest" ]; then
+        docker_compose_version="latest"
+        find_version_from_git_tags docker_compose_version "https://github.com/docker/compose" "refs/tags/v"
     else
-        echo "(*) Installing compose-switch as docker-compose..."
-        compose_switch_version="latest"
-        find_version_from_git_tags compose_switch_version "https://github.com/docker/compose-switch"
-        curl -fsSL "https://github.com/docker/compose-switch/releases/download/v${compose_switch_version}/docker-compose-linux-${architecture}" -o /usr/local/bin/docker-compose
-        chmod +x /usr/local/bin/docker-compose
-        # TODO: Verify checksum once available: https://github.com/docker/compose-switch/issues/11
+        docker_compose_version="${DOCKER_DASH_COMPOSE_VERSION}"
     fi
+
+    echo "(*) Installing docker-compose ${docker_compose_version}..."
+
+    curl --location https://github.com/docker/compose/releases/download/v${docker_compose_version}/docker-compose-linux-${dockerComposeArch} \
+        --output /usr/local/bin/docker-compose
+
+    chmod +x /usr/local/bin/docker-compose
 fi
 
 # Setup a docker group in the event the docker socket's group is not root
diff --git a/test/docker-in-docker/docker_build.sh b/test/docker-in-docker/docker_build.sh
index d51e7d644..a78f1bc8b 100755
--- a/test/docker-in-docker/docker_build.sh
+++ b/test/docker-in-docker/docker_build.sh
@@ -9,8 +9,7 @@ source dev-container-features-test-lib
 check "docker-buildx" docker buildx version
 check "docker-build" docker build ./
 
-check "installs docker-compose v1 install" bash -c "type docker-compose"
-check "installs compose-switch" bash -c "[[ -f /usr/local/bin/compose-switch ]]"
+check "installs docker-compose v2 install" bash -c "type docker-compose"
 
 # Report result
 reportResults
diff --git a/test/docker-in-docker/docker_build_2.sh b/test/docker-in-docker/docker_build_2.sh
index 742b222fb..a78f1bc8b 100644
--- a/test/docker-in-docker/docker_build_2.sh
+++ b/test/docker-in-docker/docker_build_2.sh
@@ -9,5 +9,7 @@ source dev-container-features-test-lib
 check "docker-buildx" docker buildx version
 check "docker-build" docker build ./
 
+check "installs docker-compose v2 install" bash -c "type docker-compose"
+
 # Report result
 reportResults
diff --git a/test/docker-in-docker/docker_build_compose_v1.sh b/test/docker-in-docker/docker_build_compose_v1.sh
new file mode 100644
index 000000000..a420b8b10
--- /dev/null
+++ b/test/docker-in-docker/docker_build_compose_v1.sh
@@ -0,0 +1,15 @@
+#!/bin/bash
+
+set -e
+
+# Optional: Import test library
+source dev-container-features-test-lib
+
+# Definition specific tests
+check "docker-buildx" docker buildx version
+check "docker-build" docker build ./
+
+check "not installing compose skips docker-compose v2 install" bash -c "! type docker-compose"
+
+# Report result
+reportResults
diff --git a/test/docker-in-docker/docker_build_no_compose.sh b/test/docker-in-docker/docker_build_no_compose.sh
index e913be321..a420b8b10 100755
--- a/test/docker-in-docker/docker_build_no_compose.sh
+++ b/test/docker-in-docker/docker_build_no_compose.sh
@@ -9,8 +9,7 @@ source dev-container-features-test-lib
 check "docker-buildx" docker buildx version
 check "docker-build" docker build ./
 
-check "not installing compose skips docker-compose v1 install" bash -c "! type docker-compose"
-check "not installing compose skips compose-switch" bash -c "[[ ! -f /usr/local/bin/compose-switch ]]"
+check "not installing compose skips docker-compose v2 install" bash -c "! type docker-compose"
 
 # Report result
 reportResults
diff --git a/test/docker-in-docker/docker_build_older.sh b/test/docker-in-docker/docker_build_older.sh
index 742b222fb..a78f1bc8b 100644
--- a/test/docker-in-docker/docker_build_older.sh
+++ b/test/docker-in-docker/docker_build_older.sh
@@ -9,5 +9,7 @@ source dev-container-features-test-lib
 check "docker-buildx" docker buildx version
 check "docker-build" docker build ./
 
+check "installs docker-compose v2 install" bash -c "type docker-compose"
+
 # Report result
 reportResults
diff --git a/test/docker-in-docker/scenarios.json b/test/docker-in-docker/scenarios.json
index 9c44478f1..5bd168062 100644
--- a/test/docker-in-docker/scenarios.json
+++ b/test/docker-in-docker/scenarios.json
@@ -32,7 +32,7 @@
             "docker-in-docker": {
                 "version": "latest",
                 "moby": "false",
-                "dockerDashComposeVersion": "v2"
+                "dockerDashComposeVersion": "2"
             }
         },
         "remoteUser": "node"
@@ -44,7 +44,7 @@
                 "version": "latest",
                 "installDockerBuildx": true,
                 "moby": "false",
-                "dockerDashComposeVersion": "v2"
+                "dockerDashComposeVersion": "2"
             }
         }
     },
@@ -54,7 +54,7 @@
             "docker-in-docker": {
                 "version": "20",
                 "moby": "false",
-                "dockerDashComposeVersion": "v2"
+                "dockerDashComposeVersion": "2"
             }
         },
         "remoteUser": "node"
@@ -67,6 +67,14 @@
             }
         },
         "remoteUser": "node"
+    },
+    "docker_build_compose_v1": {
+        "image": "mcr.microsoft.com/devcontainers/javascript-node:0-18",
+        "features": {
+            "docker-in-docker": {
+                "dockerDashComposeVersion": "1"
+            }
+        },
+        "remoteUser": "node"
     }
-
 }
diff --git a/test/docker-outside-of-docker/docker_build.sh b/test/docker-outside-of-docker/docker_build.sh
index 056a76425..a78f1bc8b 100755
--- a/test/docker-outside-of-docker/docker_build.sh
+++ b/test/docker-outside-of-docker/docker_build.sh
@@ -9,7 +9,7 @@ source dev-container-features-test-lib
 check "docker-buildx" docker buildx version
 check "docker-build" docker build ./
 
-check "installs docker-compose v1 install" bash -c "type docker-compose"
+check "installs docker-compose v2 install" bash -c "type docker-compose"
 
 # Report result
 reportResults
diff --git a/test/docker-outside-of-docker/docker_build_no_compose.sh b/test/docker-outside-of-docker/docker_build_no_compose.sh
index 477bf2149..a420b8b10 100755
--- a/test/docker-outside-of-docker/docker_build_no_compose.sh
+++ b/test/docker-outside-of-docker/docker_build_no_compose.sh
@@ -9,7 +9,7 @@ source dev-container-features-test-lib
 check "docker-buildx" docker buildx version
 check "docker-build" docker build ./
 
-check "not installing compose skips docker-compose v1 install" bash -c "! type docker-compose"
+check "not installing compose skips docker-compose v2 install" bash -c "! type docker-compose"
 
 # Report result
 reportResults
diff --git a/test/docker-outside-of-docker/docker_dash_compose_v1.sh b/test/docker-outside-of-docker/docker_dash_compose_v1.sh
deleted file mode 100755
index d95f3cf73..000000000
--- a/test/docker-outside-of-docker/docker_dash_compose_v1.sh
+++ /dev/null
@@ -1,13 +0,0 @@
-#!/bin/bash
-
-set -e
-
-# Optional: Import test library
-source dev-container-features-test-lib
-
-# Definition specific tests
-check "docker compose" bash -c "docker compose version | grep -E '2.[0-9]+.[0-9]+'"
-check "docker-compose" bash -c "docker-compose --version | grep -E '1.[0-9]+.[0-9]+'"
-
-# Report result
-reportResults
diff --git a/test/docker-outside-of-docker/docker_dash_compose_v1_moby.sh b/test/docker-outside-of-docker/docker_dash_compose_v1_moby.sh
deleted file mode 120000
index 51dc7d26b..000000000
--- a/test/docker-outside-of-docker/docker_dash_compose_v1_moby.sh
+++ /dev/null
@@ -1 +0,0 @@
-./docker_dash_compose_v1.sh
\ No newline at end of file
diff --git a/test/docker-outside-of-docker/docker_dash_compose_v2.sh b/test/docker-outside-of-docker/docker_dash_compose_v2.sh
index b24238f0d..8f2a104f5 100755
--- a/test/docker-outside-of-docker/docker_dash_compose_v2.sh
+++ b/test/docker-outside-of-docker/docker_dash_compose_v2.sh
@@ -9,7 +9,5 @@ source dev-container-features-test-lib
 check "docker compose" bash -c "docker compose version | grep -E '2.[0-9]+.[0-9]+'"
 check "docker-compose" bash -c "docker-compose --version | grep -E '2.[0-9]+.[0-9]+'"
 
-check "installs compose-switch as docker-compose" bash -c "[[ -f /usr/local/bin/docker-compose ]]"
-
 # Report result
 reportResults
diff --git a/test/docker-outside-of-docker/scenarios.json b/test/docker-outside-of-docker/scenarios.json
index 3b82c6cc5..889e725a0 100644
--- a/test/docker-outside-of-docker/scenarios.json
+++ b/test/docker-outside-of-docker/scenarios.json
@@ -49,7 +49,8 @@
         "image": "mcr.microsoft.com/devcontainers/base:ubuntu-20.04",
         "features": {
             "docker-outside-of-docker": {
-                "moby": true
+                "moby": true,
+                "dockerDashComposeVersion": "v2"
             }
         },
         "containerUser": "vscode"
@@ -76,26 +77,6 @@
         },
         "containerUser": "vscode"
     },
-    "docker_dash_compose_v1": {
-        "image": "mcr.microsoft.com/devcontainers/base:ubuntu-20.04",
-        "features": {
-            "docker-outside-of-docker": {
-                "moby": false,
-                "dockerDashComposeVersion": "v1"
-            }
-        },
-        "containerUser": "vscode"
-    },
-    "docker_dash_compose_v1_moby": {
-        "image": "mcr.microsoft.com/devcontainers/base:ubuntu-20.04",
-        "features": {
-            "docker-outside-of-docker": {
-                "moby": true,
-                "dockerDashComposeVersion": "v1"
-            }
-        },
-        "containerUser": "vscode"
-    },
     "docker_dash_compose_v2": {
         "image": "mcr.microsoft.com/devcontainers/base:ubuntu-20.04",
         "features": {