CircleCi postgres rake db:create is failing

I am trying to run docker file where rake db:create is there but its continuously failing with below error.

below is DB configuration using YML.

docker:
- image: circleci/ruby:2.6.5-node-browsers-legacy
  environment:
    PGHOST: 127.0.0.1
    PGUSER: postgres
    RAILS_ENV: test
    RAKE_ENV: test
- image: mdillon/postgis:9.6
  environment:
    POSTGRES_USER: postgres
    POSTGRES_PASSWORD: password
    POSTGRES_DB: circle-api_test
- image: redis