Continuation byte error when trying to connect to docker database

My first time posting here, sorry if this is in the wrong place.

Ive been trying to connect my django app to a database that is running on a docker container but i keep getting the following error:

(dbm) PS C:\Users\erick\Documents\python\mdb> python manage.py test                
Found 10 test(s).
Creating test database for alias 'default'...
Traceback (most recent call last):
  File "C:\Users\erick\Documents\python\mdb\manage.py", line 22, in <module>
    main()
  File "C:\Users\erick\Documents\python\mdb\manage.py", line 18, in main
    execute_from_command_line(sys.argv)
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\core\management\__init__.py", line 442, in execute_from_command_line
    utility.execute()
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\core\management\__init__.py", line 436, in execute
    self.fetch_command(subcommand).run_from_argv(self.argv)
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\core\management\commands\test.py", line 24, in run_from_argv        
    super().run_from_argv(argv)
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\core\management\base.py", line 413, in run_from_argv
    self.execute(*args, **cmd_options)
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\core\management\base.py", line 459, in execute
    output = self.handle(*args, **options)
             ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\core\management\commands\test.py", line 63, in handle
    failures = test_runner.run_tests(test_labels)
               ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\test\runner.py", line 1066, in run_tests
    old_config = self.setup_databases(
                 ^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\test\runner.py", line 964, in setup_databases
    return _setup_databases(
           ^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\test\utils.py", line 206, in setup_databases
    connection.creation.create_test_db(
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\base\creation.py", line 62, in create_test_db
    self._create_test_db(verbosity, autoclobber, keepdb)
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\base\creation.py", line 202, in _create_test_db
    with self._nodb_cursor() as cursor:
         ^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\anaconda3\Lib\contextlib.py", line 137, in __enter__
    return next(self.gen)
           ^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\postgresql\base.py", line 507, in _nodb_cursor
    with super()._nodb_cursor() as cursor:
         ^^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\anaconda3\Lib\contextlib.py", line 137, in __enter__
    return next(self.gen)
           ^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\base\base.py", line 712, in _nodb_cursor
    with conn.cursor() as cursor:
         ^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\utils\asyncio.py", line 26, in inner
    return func(*args, **kwargs)
           ^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\base\base.py", line 320, in cursor
    return self._cursor()
           ^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\base\base.py", line 296, in _cursor
    self.ensure_connection()
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\utils\asyncio.py", line 26, in inner
    return func(*args, **kwargs)
           ^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\base\base.py", line 279, in ensure_connection
    self.connect()
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\utils\asyncio.py", line 26, in inner
    return func(*args, **kwargs)
           ^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\base\base.py", line 256, in connect
    self.connection = self.get_new_connection(conn_params)
                      ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\utils\asyncio.py", line 26, in inner
    return func(*args, **kwargs)
           ^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\django\db\backends\postgresql\base.py", line 332, in get_new_connection
    connection = self.Database.connect(**conn_params)
                 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  File "C:\Users\erick\Documents\python\mdb\dbm\Lib\site-packages\psycopg2\__init__.py", line 122, in connect
    conn = _connect(dsn, connection_factory=connection_factory, **kwasync)
           ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
UnicodeDecodeError: 'utf-8' codec can't decode byte 0xe3 in position 58: invalid continuation byte

Ive been trying to investigate why this is happening but still dont know why. This does not happen when i use other DB that is not on a docker container.

my docker-compose.yaml file

services:
  db:
    image: postgres
    container_name: postgres
    restart: always
    env_file:
      - .env
    volumes:
      - ./dataset:/docker-entrypoint-initdb.d
    ports:
      - 5432:5432

.env file

POSTGRES_PASSWORD=postgres

POSTGRES_USER=postgres

POSTGRES_HOST=db

POSTGRES_DB=mdb

POSTGRES_INITDB_ARGS='--encoding=UTF-8 --lc-collate=C --lc-ctype=C'

LC_ALL=C.UTF-8

database config in settings.py

DATABASES = {
    "default": {
        "ENGINE": "django.db.backends.postgresql",
        "NAME": "mdb",
        "USER": "postgres",
        "PASSWORD": "postgres",
        "HOST": "db",
        "PORT": "5432",
    }
}

Could anyone help me try to find out whats causing this? Feel free to ask for any other information i might have forgotten to include here.

Thanks in advance

Welcome @ckoliveira !

This is the right place, but for future reference, I suggest you post the error message and traceback text here - don’t rely on people wanting to go to external sites to find that information.

Thanks, man.
I included the full traceback here now, my bad