docker-compose file for Rails API and Datadog Agent

docker-compose.yml

version: "3.7"

services:

  db:
    image: postgres
    environment:
      POSTGRES_PASSWORD: password
    volumes:
      - ./tmp/db:/var/lib/postgresql/data

  app:
    container_name: rails_api

    build:
      context: .

      dockerfile: config/containers/app/Dockerfile

    depends_on:
      - db
    ports:
      - '3001:3000'

    volumes:
      - .:/var/www/app

    labels:
      com.datadoghq.ad.logs: '[{"source": "ruby", "service": "app"}]'

    environment:
      PG_PASSWORD: password
      DATADOG_HOST: datadog

  # agent section
  datadog:
    image: "datadog/agent:latest"
    environment:
      - DD_API_KEY=${DD_API_KEY}
      - DD_LOGS_ENABLED=true
      - DD_AC_INCLUDE="name:rails_api" 
      - DD_PROCESS_AGENT_ENABLED=true
      - DD_SITE=datadoghq.eu

    volumes:
      - /var/run/docker.sock:/var/run/docker.sock:ro
      - /proc/:/host/proc/:ro
      - /sys/fs/cgroup/:/host/sys/fs/cgroup:ro

Hm, i will try to figure out what's happening. Just to confirm something in which region do you have your DataDog account in EU or US ?

It's EU, I have that setup correctly. So the connection is OK because if I enable the APM it's working correctly and showing up.
But now I'm troubleshooting the Logs collection that's not working. TY

Things seems to be fine in terms of setup. Also if you already have performed auto-discovery troubleshooting. Then you might need to speak with DD support they can investigate by looking into the Agent Flare.