The parameter is correct in the form of --output type=image,compression=uncompressed,force-compression=true --push

I figured why it was not working. If you use default docker builder, it seems not taking this parameter. If you a builder based on docker-container, it will work as expected.

So you will need to run

docker buildx create --name my-builder --driver docker-container

followed by

docker buildx use my-builder

before issuing the docker buildx build command