Could not find `Cargo.toml` running Cargo in docker container

Question

I am using the code:

docker run --rm -v "$(pwd)":/code \
  --mount type=volume,source="$(basename "$(pwd)")_cache",target=/code/target \
  --mount type=volume,source=registry_cache,target=/usr/local/cargo/registry \
  cosmwasm/rust-optimizer:0.12.4

I keep running into this error

error: could not find Cargo.toml in /code or any parent directory