diff --git a/.devcontainer/bitwarden_common/docker-compose.yml b/.devcontainer/bitwarden_common/docker-compose.yml
index 52f0901c70..2f3a62877e 100644
--- a/.devcontainer/bitwarden_common/docker-compose.yml
+++ b/.devcontainer/bitwarden_common/docker-compose.yml
@@ -1,5 +1,3 @@
-version: '3'
-
 services:
   bitwarden_server:
     image: mcr.microsoft.com/devcontainers/dotnet:8.0
@@ -13,7 +11,8 @@ services:
     platform: linux/amd64
     restart: unless-stopped
     env_file:
-      ../../dev/.env
+      - path: ../../dev/.env
+        required: false
     environment:
       ACCEPT_EULA: "Y"
       MSSQL_PID: Developer
diff --git a/.devcontainer/community_dev/postCreateCommand.sh b/.devcontainer/community_dev/postCreateCommand.sh
index 832f510f3f..8f1813ed78 100755
--- a/.devcontainer/community_dev/postCreateCommand.sh
+++ b/.devcontainer/community_dev/postCreateCommand.sh
@@ -51,4 +51,10 @@ Proceed? [y/N] " response
 }
 
 # main
-one_time_setup
+if [[ -z "${CODESPACES}" ]]; then
+  one_time_setup
+else
+  # Ignore interactive elements when running in codespaces since they are not supported there
+  # TODO Write codespaces specific instructions and link here
+  echo "Running in codespaces, follow instructions here: https://contributing.bitwarden.com/getting-started/server/guide/ to continue the setup"
+fi
diff --git a/.devcontainer/internal_dev/docker-compose.override.yml b/.devcontainer/internal_dev/docker-compose.override.yml
index 9aaee9ee62..acf7b0b66e 100644
--- a/.devcontainer/internal_dev/docker-compose.override.yml
+++ b/.devcontainer/internal_dev/docker-compose.override.yml
@@ -1,5 +1,3 @@
-version: '3'
-
 services:
   bitwarden_storage:
     image: mcr.microsoft.com/azure-storage/azurite:latest
diff --git a/.devcontainer/internal_dev/postCreateCommand.sh b/.devcontainer/internal_dev/postCreateCommand.sh
index 668b776447..071ffc0b29 100755
--- a/.devcontainer/internal_dev/postCreateCommand.sh
+++ b/.devcontainer/internal_dev/postCreateCommand.sh
@@ -89,4 +89,10 @@ install_stripe_cli() {
 }
 
 # main
-one_time_setup
+if [[ -z "${CODESPACES}" ]]; then
+  one_time_setup
+else
+  # Ignore interactive elements when running in codespaces since they are not supported there
+  # TODO Write codespaces specific instructions and link here
+  echo "Running in codespaces, follow instructions here: https://contributing.bitwarden.com/getting-started/server/guide/ to continue the setup"
+fi
\ No newline at end of file