Test works on local machine but in Docker I get "no module named 'test' "

I have a pytest.ini and a test_something.py file in the same dir as my manage.py. If I run 'pytest' directly, it works. If I run the whole thing with docker-compose, get an interactive console on the docker container and run 'pytest' there, I get:

root@06070aaebbbd:/code/coco# pytest
Traceback (most recent call last):
File "/usr/local/lib/python3.7/site-packages/pytest_django/plugin.py", line 179, in _handle_import_error
yield
File "/usr/local/lib/python3.7/site-packages/pytest_django/plugin.py", line 351, in pytest_load_initial_conftests
dj_settings.DATABASES
File "/usr/local/lib/python3.7/site-packages/django/conf/init.py", line 82, in getattr
self._setup(name)
File "/usr/local/lib/python3.7/site-packages/django/conf/init.py", line 69, in _setup
self._wrapped = Settings(settings_module)
File "/usr/local/lib/python3.7/site-packages/django/conf/init.py", line 170, in init
mod = importlib.import_module(self.SETTINGS_MODULE)
File "/usr/local/lib/python3.7/importlib/init.py", line 127, in import_module
return _bootstrap._gcd_import(name[level:], package, level)
File "", line 1006, in _gcd_import
File "", line 983, in _find_and_load
File "", line 953, in _find_and_load_unlocked
File "", line 219, in _call_with_frames_removed
File "", line 1006, in _gcd_import
File "", line 983, in _find_and_load
File "", line 965, in _find_and_load_unlocked
ModuleNotFoundError: No module named 'test'

During handling of the above exception, another exception occurred:

Traceback (most recent call last):
File "/usr/local/bin/pytest", line 8, in
sys.exit(console_main())
File "/usr/local/lib/python3.7/site-packages/_pytest/config/init.py", line 187, in console_main
code = main()
File "/usr/local/lib/python3.7/site-packages/_pytest/config/init.py", line 145, in main
config = _prepareconfig(args, plugins)
File "/usr/local/lib/python3.7/site-packages/_pytest/config/init.py", line 325, in _prepareconfig
pluginmanager=pluginmanager, args=args
File "/usr/local/lib/python3.7/site-packages/pluggy/_hooks.py", line 265, in call
return self._hookexec(self.name, self.get_hookimpls(), kwargs, firstresult)
File "/usr/local/lib/python3.7/site-packages/pluggy/_manager.py", line 80, in _hookexec
return self._inner_hookexec(hook_name, methods, kwargs, firstresult)
File "/usr/local/lib/python3.7/site-packages/pluggy/_manager.py", line 80, in _hookexec
return self._inner_hookexec(hook_name, methods, kwargs, firstresult)
File "/usr/local/lib/python3.7/site-packages/pluggy/_callers.py", line 55, in _multicall
gen.send(outcome)
File "/usr/local/lib/python3.7/site-packages/_pytest/helpconfig.py", line 102, in pytest_cmdline_parse
config: Config = outcome.get_result()
File "/usr/local/lib/python3.7/site-packages/pluggy/_result.py", line 60, in get_result
raise ex[1].with_traceback(ex[2])
File "/usr/local/lib/python3.7/site-packages/pluggy/_callers.py", line 39, in _multicall
res = hook_impl.function(*args)
File "/usr/local/lib/python3.7/site-packages/_pytest/config/init.py", line 1016, in pytest_cmdline_parse
self.parse(args)
File "/usr/local/lib/python3.7/site-packages/_pytest/config/init.py", line 1304, in parse
self._preparse(args, addopts=addopts)
File "/usr/local/lib/python3.7/site-packages/_pytest/config/init.py", line 1207, in _preparse
early_config=self, args=args, parser=self._parser
File "/usr/local/lib/python3.7/site-packages/pluggy/_hooks.py", line 265, in call
return self._hookexec(self.name, self.get_hookimpls(), kwargs, firstresult)
File "/usr/local/lib/python3.7/site-packages/pluggy/_manager.py", line 80, in _hookexec
return self._inner_hookexec(hook_name, methods, kwargs, firstresult)
File "/usr/local/lib/python3.7/site-packages/pluggy/_callers.py", line 60, in _multicall
return outcome.get_result()
File "/usr/local/lib/python3.7/site-packages/pluggy/_result.py", line 60, in get_result
raise ex[1].with_traceback(ex[2])
File "/usr/local/lib/python3.7/site-packages/pluggy/_callers.py", line 39, in _multicall
res = hook_impl.function(*args)
File "/usr/local/lib/python3.7/site-packages/pytest_django/plugin.py", line 351, in pytest_load_initial_conftests
dj_settings.DATABASES
File "/usr/local/lib/python3.7/contextlib.py", line 130, in exit
self.gen.throw(type, value, traceback)
File "/usr/local/lib/python3.7/site-packages/pytest_django/plugin.py", line 183, in _handle_import_error
raise ImportError(msg)
ImportError: No module named 'test'

Any idea what might be the problem here?

Start with pytest.ini, manage.py, test_something.py, and the docker-compose setup; compare the directory and environment when pytest runs locally versus in the container, using the pytest_django/plugin.py traceback as the entry point. Done means the same test command resolves the Django settings module and reaches the test suite inside Docker.