Gitlab CI runner fails at docker-compose build with profiles

My idea is to have a single docker-compose file that I can configure with --profile db_as_container flag depending on whether I want to have cloud database (MongoDB atlas) or local database-as-container.

Here's my docker-compose.yml:

version: '3'

services:
    app:
        image: '${APP_NAME}:${TAG:-latest}'
        build: .
        ports:
            - '${PORT}:${PORT}'

    mongo_db:
        image: mongo
        container_name: mongo_db_container
        ports:
            - "27017:27017"
        profiles:
            - db_as_container

My docker compose up shell script (dc-up.sh) deduces whether my DB_CONNECTION_STRING is cloud type or local container type and calls appropriate up command.

TAG=${TAG} docker-compose --profile db_as_container up -d --build

vs.

TAG=${TAG} docker-compose up -d --build

And this works locally and does not complain about using profiles.

Problem is when my Gitlab CI runner runs my build script (build-and-push.sh):

TAG=${TAG} docker-compose build

It produces this error:

The Compose file './docker-compose.yml' is invalid because: Unsupported config option for services.mongo_db: 'profiles'

What am I doing wrong here?