Ignore PostgreSQL and creates its own SQLite??

Checklist

• Have you pulled and found the error with jc21/nginx-proxy-manager:latest docker image? Pulled image, inspected image to verify, and no errors.
• Are you sure you're not using someone else's docker image? I am using jc21/nginx-proxy-manager:2.12.3
• Have you searched for similar issues (both open and closed)? Yes, I can't find any similar issue to mine.

Describe the bug
When attempting to configure Nginx Proxy Manager to use PostgreSQL as the database backend, it creates and uses its default SQLite database instead. I have confirmed that all required PostgreSQL environment variables are set, yet the application still defaults to SQLite.

Nginx Proxy Manager Version
2.12.3

To Reproduce
Steps to reproduce the behavior:

1. Configure your environment with PostgreSQL settings (i.e., DB_TYPE, DB_HOST, DB_PORT, DB_NAME, DB_USER, and DB_PASSWORD) in your Docker Compose file or env file.
2. Deploy the container using jc21/nginx-proxy-manager:2.12.3
3. Access the application and verify that it created a SQLite database instead of connecting to PostgreSQL.
4. Check logs and settings to confirm the database backend in use.

Expected behavior
Nginx Proxy Manager should use the provided PostgreSQL settings and connect to the PostgreSQL database, rather than falling back to creating its own SQLite database.

Operating System
Docker on Raspberry Pi 4 using Debian 12 (Bookworm)

Additional context
Local IP-addresses are censored in the image, I'm paranoid. There is no IP mismatch. I logged into both containers and can confirm they are able to see and ping each other. I already created the PostgreSQL in a different container. I made sure to login to the PostgresSQL with pgAdmin 4 and manually created the npm database, npm user, and a password to that npm user.

What am I doing wrong here?? I am following the Postgres database documentation.

docker-compose.yml:

Container Logs in Portainer:

Start with the linked PostgreSQL setup documentation, the docker-compose.yml or env file, and the container logs to compare the configured DB_TYPE, DB_HOST, DB_PORT, DB_NAME, DB_USER, and DB_PASSWORD values with what the application receives. Done means identifying why the PostgreSQL configuration is ignored and confirming that the container connects to PostgreSQL without creating or using SQLite.