diff --git a/README.md b/README.md
index 50b0475..70692b5 100644
--- a/README.md
+++ b/README.md
@@ -11,9 +11,7 @@ Please execute using command line:
 
 ```bash
 rm -rf $HOME/daytona/
-mkdir -p $HOME/daytona/.config/daytona/server/build
-mkdir $HOME/daytona/.config/daytona/server/registry
-mkdir -p $HOME/daytona/.config/daytona/providers
+mkdir -p $HOME/daytona/
 chown -R "$UID:$GID" $HOME/daytona/
 ```
 
diff --git a/docker-compose.yml b/docker-compose.yml
index ac5d666..e708f58 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -2,6 +2,9 @@ version: "3"
 
 services:
   daytona-docker-extension:
+    environment:
+      - LOG_LEVEL=debug
+      - HOME=$HOME/daytona
     image: ${DESKTOP_PLUGIN_IMAGE}
     hostname: daytona-docker-extension
     ports:
@@ -12,9 +15,6 @@ services:
       - $HOME/daytona:$HOME/daytona
       - headscale:$HOME/daytona/.config/daytona/server/headscale
       - /var/run/docker.sock.raw:/var/run/docker.sock
-    environment:
-      - LOG_LEVEL=debug
-      - HOME=$HOME/daytona
 
 volumes:
   headscale: