Database configuration in divio app setup not working correctly

[gustaf-fm]

When I run divio app setup <my-project> I get this output:

creating new database container                                                                                                                                                                                                         
 ===> Pulling database from <my-project> test environment                                                                                                                                                                           
 ---> Preparing download  [99s]                                                                                                                                                                                                         
 ---> Writing temp file: /home/<user>/<my-project>/.divio/data.tar.gz                                                                                                                                                            
 ---> Downloading database [4s]                                                                                                                                                                                                         
 ---> Starting local database server                                                                                                                                                                                                    
[+] Running 1/1                                                                                                                                                                                                                         
 ⠿ Container <my-project>-db-1  Started                                                                                                                                                                                        0.3s 
      [0s]                                                                                                                                                                                                                              
 ---> Waiting for local database serverCouldn't connect to database container. Database server may not have started. 

Using docker ps and docker logs I get:

Error: Database is uninitialized and superuser password is not specified.                                                                                                                                                               
       You must specify POSTGRES_PASSWORD to a non-empty value for the                                                                                                                                                                  
       superuser. For example, "-e POSTGRES_PASSWORD=password" on "docker run".                                                                                                                                                         
                                                                                                                                                                                                                                        
       You may also use "POSTGRES_HOST_AUTH_METHOD=trust" to allow all                                                                                                                                                                  
       connections without a password. This is *not* recommended.                                                                                                                                                                       
                                                                                                                                                                                                                                        
       See PostgreSQL documentation about "trust":                                                                                                                                                                                      
       https://www.postgresql.org/docs/current/auth-trust.html 

I'm not sure why the DB is not getting set up correctly here?