@fifoude1 came across this from a google search, was having the same issue on a Raspberry PI 5 running Arch Linux with Home Assistant installed in Docker.
The issue is with the python module pydantic version < 1.10.15. Enter a shell with
docker exec -it container_name sh
and then update pydantic with pip
pip install --force-reinstall -v “pydantic==1.10.16”
Should work after a cointainer restart