fly deploy unable to find the specified dockerfile

I have a project with a fly.toml in the root. I have specified the dockerfile as this

[build]
  dockerfile = "Dockerfile.backend"

When I run fly deploy --local-only, it throws this error:

❯ fly deploy --local-only
==> Verifying app config
--> Verified app config
==> Building image
==> Creating build context
--> Creating build context done
==> Building image with Docker
--> docker host: 20.10.6 linux x86_64
Sending build context to Docker daemon  411.6MB
Error failed to fetch an image or build from source: error building: error building with docker: Error response from daemon: Cannot locate specified Dockerfile: Dockerfile.backend

I can assure you that this file exists in the root of the project. If I intentionally specify a non existent dockerfile, it throws a different error:

❯ fly deploy --local-only
==> Verifying app config
--> Verified app config
==> Building image
Error failed to fetch an image or build from source: Dockerfile '/home/snehanshu/Desktop/test-app/Dockerfile.backen' not found

Is this a bug or am I doing something wrong?

Flyctl version flyctl v0.0.470 linux/amd64 Commit: 5b41efb9 BuildDate: 2023-02-25T16:10:28Z