So it looks like this is very difficult, if not impossible atm, to do with gunicorn. So what I did was
- Create a 
degub_app.py file in my project with : 
from myapp.api import create_app
if __name__=="__main__":
    app = create_app()
    app.run('0.0.0.0', 8000, debug=False)
- I created a debug container which runs nothing on start it just waiting idle like this in my 
docker-compose file: 
 api-debug:
        image: "myapp:latest"
        restart: on-failure:3
        environment:
        volumes:
          - ./:/usr/src/app
        depends_on:
          - rabbitmq
          - redis
          - mongo
        tty: true
        stdin_open: true
        command: tail -F anything
        ports:
          - 8000:8000
- Then using 
VSCode with the Remote Container pluggin i attached to that container. This starts a new VSCode window and shows you the files inside the container. 
Note Since the VSCode is now connected to the container I had to re-install the Python extension (you can look this up but it is easy just go to pluggins and re-install to container)
- I created a 
launch.json inside the container to run the degub_app.py that I mentioned above like this: 
{
"version": "0.2.0",
"configurations": [
{
"name": "Python: Debug API",
"type": "python",
"request": "launch",
"program": "${workspaceFolder}my_path/debug_api.py",
"console": "integratedTerminal",
"justMyCode": false
}
]
}