I’m encountering an issue with Dapr sidecar communication between two services (service1 and service2) in Docker Compose. Here’s my setup:

service1 communicates with service2 through Dapr’s sidecar using HTTP.
Both services and Dapr are configured in docker-compose.yml with the appropriate ports and dependencies.
When service1 tries to invoke service2 via Dapr using the endpoint http://localhost:8000/v1.0/invoke/service2/method/endpoint, it fails with the error:

{
    "errorCode": "ERR_DIRECT_INVOKE",
    "message": "failed to invoke, id: service2, err: Post "http://127.0.0.1:5002/endpoint": dial tcp 127.0.0.1:5002: connect: connection refused"
}

However, http://localhost:5002/endpoint does work.

Here are the relevant:
docker-compose.yml:

version: '3.9'

services:
  service1:
    build: ./service1
    ports:
      - "5001:5001"
    depends_on:
      - dapr
    environment:
      - APP_PORT=5001
    networks:
      - mynetwork

  service2:
    build: ./service2
    ports:
      - "5002:5002"
    depends_on:
      - dapr
    environment:
      - APP_PORT=5002
    networks:
      - mynetwork

  dapr:
    image: "daprio/daprd:latest"
    command: [
      "./daprd",
      "-app-id",
      "service2", 
      "-app-port",
      "5002", 
      "-dapr-http-port", 
      "8000", 
      "-components-path", 
      "/dapr/components", 
      "-config", 
      "/dapr/configuration.yaml"
      ]
    volumes:
      - ./dapr:/dapr
    ports:
      - "8000:8000"
    networks:
      - mynetwork

networks:
  mynetwork:
    driver: bridge

configuration.yaml:

apiVersion: dapr.io/v1alpha1
kind: Configuration
metadata:
  name: daprConfig
spec:
  tracing:
    samplingRate: "1"

pubsub.yaml is empty

Service 1 — app.py:

from flask import Flask, request
import requests

app = Flask(__name__)

@app.route('/invoke', methods=['POST'])
def invoke():
    payload = request.json
    response = requests.post('http://localhost:8000/v1.0/invoke/service2/method/endpoint', json=payload)
    return response.json()

if __name__ == '__main__':
    app.run(host='0.0.0.0', port=5001)

Servic 2 — app.py:

from flask import Flask, request, jsonify

app = Flask(__name__)

@app.route('/endpoint', methods=['POST'])
def endpoint():
    data = request.json
    return jsonify({"message": "Hello from Service 2", "data": data})

if __name__ == '__main__':
    app.run(host='0.0.0.0', port=5002)

docker-compose logs dapr

poc-dapr-1  | Flag --components-path has been deprecated, use --resources-path
poc-dapr-1  | time="2024-07-17T08:55:21.043345396Z" level=info msg="Starting Dapr Runtime -- version 1.13.5 -- commit e490e58f62110ecdc430d2f39d57428729a487ea" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.043513409Z" level=info msg="Log level set to: info" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.045307341Z" level=warning msg="mTLS is disabled. Skipping certificate request and tls validation" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.security type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.076611723Z" level=warning msg="The default value for 'spec.metric.http.increasedCardinality' will change to 'false' in Dapr 1.14" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.126179456Z" level=info msg="standalone mode configured" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.126419523Z" level=info msg="app id: service2" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime 
type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.126560728Z" level=info msg="metrics server started on :9090/" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.126646141Z" level=info msg="Dapr trace sampler initialized: DaprTraceSampler(P=1.000000)" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.137772598Z" level=info msg="local service entry announced: service2 -> 172.26.0.2:48514" app_id=service2 component="nr (mdns/v1)" instance=3b25aa53d9cb scope=dapr.contrib type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.138366125Z" level=info msg="Initialized name resolution to mdns" app_id=service2 instance=3b25aa53d9cb 
scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.139687587Z" level=info msg="Loading components…" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.186632178Z" level=info msg="Waiting for all outstanding components to be processed…" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.186878278Z" level=info msg="All outstanding components processed" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.187139399Z" level=info msg="Loading endpoints…" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.234287131Z" level=info msg="Waiting for all outstanding http endpoints to be processed…" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.234587307Z" level=info msg="All outstanding http endpoints processed" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.235049017Z" level=info msg="gRPC server listening on TCP address: :50001" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.grpc.api type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.235245793Z" level=info msg="Enabled gRPC tracing middleware" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.grpc.api type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.235289715Z" level=info msg="Enabled gRPC metrics middleware" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.grpc.api type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.235585783Z" level=info msg="Registering workflow engine for gRPC endpoint: [::]:50001" app_id=service2 
instance=3b25aa53d9cb scope=dapr.runtime.grpc.api type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.235937359Z" level=info msg="API gRPC server is running on port 50001" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.236263142Z" level=info msg="Enabled max body size HTTP middleware with size 4 MB" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.http type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.236447767Z" level=info msg="Enabled tracing HTTP middleware" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.http type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.236492016Z" level=info msg="Enabled metrics HTTP middleware" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.http type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.23799336Z" level=info msg="HTTP server listening on TCP address: :8000" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.http type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.238381051Z" level=info msg="HTTP server is running on port 8000" app_id=service2 instance=3b25aa53d9cb 
scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.238537041Z" level=info msg="The request body size parameter is: 4" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.238792905Z" level=info msg="gRPC server listening on TCP address: :48514" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.grpc.internal type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.23887658Z" level=info msg="Enabled gRPC tracing middleware" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.grpc.internal type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.238904045Z" level=info msg="Enabled gRPC metrics middleware" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime.grpc.internal type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.239145982Z" level=info msg="Internal gRPC server is running on port 48514" app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5
poc-dapr-1  | time="2024-07-17T08:55:21.239486459Z" level=info msg="application protocol: http. waiting on port 5002.  This will block until the app is listening on that port." app_id=service2 instance=3b25aa53d9cb scope=dapr.runtime type=log ver=1.13.5

Any suggestions on how to troubleshoot or fix this issue would be greatly appreciated. Thank you!