Compose: docker-compose fails with AttributeError: 'module' object has no attribute 'get_config_header'

I recently upgraded to docker version 1.13 and docker-compose 1.10.0.
When using a docker compose file (both version 2 or version 3), the commands docker-compose up docker-compose pull <service_name> I get the following error:

$ docker-compose up
Pulling myredis (redis:latest)...
Traceback (most recent call last):
File "/usr/local/bin/docker-compose", line 11, in
sys.exit(main())
File "/usr/local/lib/python2.7/dist-packages/compose/cli/main.py", line 64, in main
command()
File "/usr/local/lib/python2.7/dist-packages/compose/cli/main.py", line 116, in perform_command
handler(command, command_options)
File "/usr/local/lib/python2.7/dist-packages/compose/cli/main.py", line 848, in up
remove_orphans=remove_orphans)
File "/usr/local/lib/python2.7/dist-packages/compose/project.py", line 389, in up
svc.ensure_image_exists(do_build=do_build)
File "/usr/local/lib/python2.7/dist-packages/compose/service.py", line 312, in ensure_image_exists
self.pull()
File "/usr/local/lib/python2.7/dist-packages/compose/service.py", line 878, in pull
output = self.client.pull(repo, tag=tag, stream=True)
File "/usr/local/lib/python2.7/dist-packages/docker/api/image.py", line 333, in pull
header = auth.get_config_header(self, registry)
AttributeError: 'module' object has no attribute 'get_config_header'

Here are my compose files, note that both version 2 and 3 fail with the same error.

~/Downloads $ cat docker-compose.yml
version: '2'
services:
  myredis:
    image: redis:alpine

~/Downloads $ cat docker-compose.yml
version: '3'
services:
  myredis:
    image: redis:alpine

~/Downloads $ docker version
Client:
Version: 1.13.0
API version: 1.25
Go version: go1.7.3
Git commit: 49bf474
Built: Tue Jan 17 09:58:26 2017
OS/Arch: linux/amd64

Server:
Version: 1.13.0
API version: 1.25 (minimum version 1.12)
Go version: go1.7.3
Git commit: 49bf474
Built: Tue Jan 17 09:58:26 2017
OS/Arch: linux/amd64
Experimental: false

~/Downloads $ docker info
WARNING: No swap limit support
Containers: 5
Running: 0
Paused: 0
Stopped: 5
Images: 59
Server Version: 1.13.0
Storage Driver: aufs
Root Dir: /var/lib/docker/aufs
Backing Filesystem: extfs
Dirs: 104
Dirperm1 Supported: true
Logging Driver: json-file
Cgroup Driver: cgroupfs
Plugins:
Volume: local
Network: bridge host macvlan null overlay
Swarm: inactive
Runtimes: runc
Default Runtime: runc
Init Binary: docker-init
containerd version: 03e5862ec0d8d3b3f750e19fca3ee367e13c090e
runc version: 2f7393a47307a16f8cee44a37b262e8b81021e3e
init version: 949e6fa
Security Options:
apparmor
seccomp
Profile: default
Kernel Version: 4.4.0-53-generic
Operating System: Ubuntu 16.04.1 LTS
OSType: linux
Architecture: x86_64
CPUs: 8
Total Memory: 15.55 GiB
Name: REDACTED
ID: EWM5:UMNC:4KLA:MYJK:FZ7F:JSKE:D2NB:CICK:KL33:QWEE:9000:K6OJ
Docker Root Dir: /var/lib/docker
Debug Mode (client): false
Debug Mode (server): false
Username: REDACTED
Registry: https://index.docker.io/v1/
Experimental: false
Insecure Registries:
127.0.0.0/8
Live Restore Enabled: false

~/Downloads $ docker-compose version
docker-compose version 1.10.0, build 4bd6f1a
docker-py version: 2.0.2
CPython version: 2.7.12
OpenSSL version: OpenSSL 1.0.2g 1 Mar 2016

~/Downloads $ uname -ra
Linux REDACTED 4.4.0-53-generic #74-Ubuntu SMP Fri Dec 2 15:59:10 UTC 2016 x86_64 x86_64 x86_64 GNU/Linux

~/Downloads $ lsb_release -ar
Distributor ID: Ubuntu
Description: Ubuntu 16.04.1 LTS
Release: 16.04
Codename: xenial
No LSB modules are available.

docker by itself (without docker-compose) seems to work just fine:

~/Downloads $ docker run -it redis:alpine
Unable to find image 'redis:alpine' locally
alpine: Pulling from library/redis
0a8490d0dfd3: Pull complete
c8d0e817ebe2: Pull complete
7f2a4f935feb: Pull complete
0b43e209f780: Pull complete
b06b9be4b2bc: Pull complete
5de037257f43: Pull complete
Digest: sha256:a06a61747e4a7b46788e2813b21ea6b06386df8e238e56f51f8793adb48f0a8b
Status: Downloaded newer image for redis:alpine
1:C 25 Jan 08:59:26.533 # Warning: no config file specified, using the default config. In order to specify a config file use redis-server /path/to/redis.conf
_._
_.-__ ''-._ _.- ._. ''-._ Redis 3.2.6 (00000000/0) 64 bit
.-`` .-.\/ _.,_ ''-._
....
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