The no password login feature, out of the box, will only work when WordPress can detect you are connecting from localhost.
Since docker runs a container in its own network, the plugin will see you coming from an external IP and skip the no password login.
If you’d like to get it working in docker you’ll need to setup a custom filter that looks like the code below. Note you’ll need to implement the is_dev_environment function yourself.
add_filter('is-local-host', function() { return is_dev_environment() });