Docker Compose Up gives "The system cannot find the file specified." error

You and I may or may not have the same problem. In the link posted by @Haken Lid above, the issue is with the PATH environment variable not having the correct version of Python.

BUT, for me, the issue was that I had not set all of my environment variables, by running

eval $(docker-machine env <vmname>)

before I ran the docker-compose <any command>.

I just forgot to start "Docker for Windows" which resulted in that error.