Selfhosted
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The only thing that makes this case worse in docker is that more info is in ENV variables. The vulnerability has nothing to do with containers though, and using ENV variables to provide sensitive data is in general a bad decision, since they can be leaked to any process with /proc access.
Unfortunately, ENV is still a common way which people use to pass data to applications inside containers, but it is not in any way a requirement imposed by the tech.
what are the other alternatives to ENV that are more preferred in terms of security?
A named volume for the config directory for one.
That's just as insecure lol, env vars are far better