azure Containerapp compose env value

I am trying to deploy multiple containers from docker compose file using az containerapp compose command. It does pick up variable names under environment: in docker-compose.yaml file. But it does not pickup values for these environment variables. I was reading through documentation, here, but haven't found the answer. Is it possible to use .env file? The only workaround I know is to use containerapp native yaml file and set variable value using it. Are the others ways?

The az containerapp compose command does not directly support .env files for populating environment variable values in a docker-compose.yaml file. Would recommend you to switch to native container app yaml i.e. manually pass environment variables via cli, yaml config, or through preprocessing.

something like this-

properties:
  containers:
    - name: app
      image: nginx:latest
      env:
        - name: VAR1
          value: value1
        - name: VAR2
          value: value2

Found similar thread1 and thread2 asked on MS QnA forum

You can also checkout MS Doc