diff --git a/cmd/compose/config.go b/cmd/compose/config.go
index b6b1f352d81..8325946cdbc 100644
--- a/cmd/compose/config.go
+++ b/cmd/compose/config.go
@@ -330,7 +330,7 @@ func runHash(ctx context.Context, dockerCli command.Cli, opts configOptions) err
 			return err
 		}
 
-		hash, err := compose.ServiceHash(project, s)
+		hash, err := compose.ServiceHash(s)
 
 		if err != nil {
 			return err
diff --git a/pkg/compose/convergence.go b/pkg/compose/convergence.go
index 82b58e379f8..3b680fe77c3 100644
--- a/pkg/compose/convergence.go
+++ b/pkg/compose/convergence.go
@@ -128,11 +128,11 @@ func (c *convergence) ensureService(ctx context.Context, project *types.Project,
 
 	sort.Slice(containers, func(i, j int) bool {
 		// select obsolete containers first, so they get removed as we scale down
-		if obsolete, _ := mustRecreate(project, service, containers[i], recreate); obsolete {
+		if obsolete, _ := mustRecreate(service, containers[i], recreate); obsolete {
 			// i is obsolete, so must be first in the list
 			return true
 		}
-		if obsolete, _ := mustRecreate(project, service, containers[j], recreate); obsolete {
+		if obsolete, _ := mustRecreate(service, containers[j], recreate); obsolete {
 			// j is obsolete, so must be first in the list
 			return false
 		}
@@ -158,7 +158,7 @@ func (c *convergence) ensureService(ctx context.Context, project *types.Project,
 			continue
 		}
 
-		mustRecreate, err := mustRecreate(project, service, container, recreate)
+		mustRecreate, err := mustRecreate(service, container, recreate)
 		if err != nil {
 			return err
 		}
@@ -292,14 +292,14 @@ func (c *convergence) resolveSharedNamespaces(service *types.ServiceConfig) erro
 	return nil
 }
 
-func mustRecreate(project *types.Project, expected types.ServiceConfig, actual moby.Container, policy string) (bool, error) {
+func mustRecreate(expected types.ServiceConfig, actual moby.Container, policy string) (bool, error) {
 	if policy == api.RecreateNever {
 		return false, nil
 	}
 	if policy == api.RecreateForce || expected.Extensions[extLifecycle] == forceRecreate {
 		return true, nil
 	}
-	configHash, err := ServiceHash(project, expected)
+	configHash, err := ServiceHash(expected)
 	if err != nil {
 		return false, err
 	}
diff --git a/pkg/compose/create.go b/pkg/compose/create.go
index 92a2b0d3a6b..ccf92058057 100644
--- a/pkg/compose/create.go
+++ b/pkg/compose/create.go
@@ -213,7 +213,7 @@ func (s *composeService) getCreateConfigs(ctx context.Context,
 	inherit *moby.Container,
 	opts createOptions,
 ) (createConfigs, error) {
-	labels, err := s.prepareLabels(opts.Labels, p, service, number)
+	labels, err := s.prepareLabels(opts.Labels, service, number)
 	if err != nil {
 		return createConfigs{}, err
 	}
@@ -499,8 +499,8 @@ func parseSecurityOpts(p *types.Project, securityOpts []string) ([]string, bool,
 	return parsed, unconfined, nil
 }
 
-func (s *composeService) prepareLabels(labels types.Labels, project *types.Project, service types.ServiceConfig, number int) (map[string]string, error) {
-	hash, err := ServiceHash(project, service)
+func (s *composeService) prepareLabels(labels types.Labels, service types.ServiceConfig, number int) (map[string]string, error) {
+	hash, err := ServiceHash(service)
 	if err != nil {
 		return nil, err
 	}
diff --git a/pkg/compose/hash.go b/pkg/compose/hash.go
index b18232232f0..284ccaa76fc 100644
--- a/pkg/compose/hash.go
+++ b/pkg/compose/hash.go
@@ -18,14 +18,13 @@ package compose
 
 import (
 	"encoding/json"
-	"os"
 
 	"github.com/compose-spec/compose-go/v2/types"
 	"github.com/opencontainers/go-digest"
 )
 
 // ServiceHash computes the configuration hash for a service.
-func ServiceHash(project *types.Project, o types.ServiceConfig) (string, error) {
+func ServiceHash(o types.ServiceConfig) (string, error) {
 	// remove the Build config when generating the service hash
 	o.Build = nil
 	o.PullPolicy = ""
@@ -38,25 +37,5 @@ func ServiceHash(project *types.Project, o types.ServiceConfig) (string, error)
 	if err != nil {
 		return "", err
 	}
-
-	for _, serviceConfig := range o.Configs {
-		projectConfig, ok := project.Configs[serviceConfig.Source]
-		if !ok {
-			continue
-		}
-
-		if projectConfig.Content != "" {
-			bytes = append(bytes, []byte(projectConfig.Content)...)
-		} else if projectConfig.File != "" {
-			content, err := os.ReadFile(projectConfig.File)
-			if err != nil {
-				return "", err
-			}
-			bytes = append(bytes, content...)
-		} else if projectConfig.Environment != "" {
-			bytes = append(bytes, []byte(projectConfig.Environment)...)
-		}
-	}
-
 	return digest.SHA256.FromBytes(bytes).Encoded(), nil
 }
diff --git a/pkg/compose/hash_test.go b/pkg/compose/hash_test.go
index 0ae121cd4e4..73b7f387735 100644
--- a/pkg/compose/hash_test.go
+++ b/pkg/compose/hash_test.go
@@ -23,80 +23,21 @@ import (
 	"gotest.tools/v3/assert"
 )
 
-func TestServiceHashWithAllValuesTheSame(t *testing.T) {
-	hash1, err := ServiceHash(projectConfig("a", "b", "c", ""), serviceConfig("myContext1", "always", 1))
+func TestServiceHash(t *testing.T) {
+	hash1, err := ServiceHash(serviceConfig(1))
 	assert.NilError(t, err)
-	hash2, err := ServiceHash(projectConfig("a", "b", "c", ""), serviceConfig("myContext1", "always", 1))
+	hash2, err := ServiceHash(serviceConfig(2))
 	assert.NilError(t, err)
 	assert.Equal(t, hash1, hash2)
 }
 
-func TestServiceHashWithIgnorableValues(t *testing.T) {
-	hash1, err := ServiceHash(&types.Project{}, serviceConfig("myContext1", "always", 1))
-	assert.NilError(t, err)
-	hash2, err := ServiceHash(&types.Project{}, serviceConfig("myContext2", "never", 2))
-	assert.NilError(t, err)
-	assert.Equal(t, hash1, hash2)
-}
-
-func TestServiceHashWithChangedConfigContent(t *testing.T) {
-	hash1, err := ServiceHash(projectConfig("myConfigSource", "a", "", ""), serviceConfig("myContext1", "always", 1))
-	assert.NilError(t, err)
-	hash2, err := ServiceHash(projectConfig("myConfigSource", "b", "", ""), serviceConfig("myContext2", "never", 2))
-	assert.NilError(t, err)
-	assert.Assert(t, hash1 != hash2)
-}
-
-func TestServiceHashWithChangedConfigEnvironment(t *testing.T) {
-	hash1, err := ServiceHash(projectConfig("myConfigSource", "", "a", ""), serviceConfig("myContext1", "always", 1))
-	assert.NilError(t, err)
-	hash2, err := ServiceHash(projectConfig("myConfigSource", "", "b", ""), serviceConfig("myContext2", "never", 2))
-	assert.NilError(t, err)
-	assert.Assert(t, hash1 != hash2)
-}
-
-func TestServiceHashWithChangedConfigFile(t *testing.T) {
-	hash1, err := ServiceHash(
-		projectConfig("myConfigSource", "", "", "./testdata/config1.txt"),
-		serviceConfig("myContext1", "always", 1),
-	)
-	assert.NilError(t, err)
-	hash2, err := ServiceHash(
-		projectConfig("myConfigSource", "", "", "./testdata/config2.txt"),
-		serviceConfig("myContext2", "never", 2),
-	)
-	assert.NilError(t, err)
-	assert.Assert(t, hash1 != hash2)
-}
-
-func projectConfig(configName, configContent, configEnvironment, configFile string) *types.Project {
-	return &types.Project{
-		Configs: types.Configs{
-			configName: types.ConfigObjConfig{
-				Content:     configContent,
-				Environment: configEnvironment,
-				File:        configFile,
-			},
-		},
-	}
-}
-
-func serviceConfig(buildContext, pullPolicy string, replicas int) types.ServiceConfig {
+func serviceConfig(replicas int) types.ServiceConfig {
 	return types.ServiceConfig{
-		Build: &types.BuildConfig{
-			Context: buildContext,
-		},
-		PullPolicy: pullPolicy,
-		Scale:      &replicas,
+		Scale: &replicas,
 		Deploy: &types.DeployConfig{
 			Replicas: &replicas,
 		},
 		Name:  "foo",
 		Image: "bar",
-		Configs: []types.ServiceConfigObjConfig{
-			{
-				Source: "myConfigSource",
-			},
-		},
 	}
 }
diff --git a/pkg/compose/testdata/config1.txt b/pkg/compose/testdata/config1.txt
deleted file mode 100644
index c8a618fe3ee..00000000000
--- a/pkg/compose/testdata/config1.txt
+++ /dev/null
@@ -1 +0,0 @@
-This is 1 config file
diff --git a/pkg/compose/testdata/config2.txt b/pkg/compose/testdata/config2.txt
deleted file mode 100644
index 51f7bc363de..00000000000
--- a/pkg/compose/testdata/config2.txt
+++ /dev/null
@@ -1 +0,0 @@
-This is 2 config file