same thing happened to me, I installed docker with homebrew first and then installed the docker desktop from the official. after uninstalling the homebrew one everything back to work, thanks @tfgcampos for sharing this
This resolved my issue as well. The same conditions - new Docker for desktop installation, new AWS CLI installation. Docker by default called from /opt/homebrew/bin/docker/, but when run from /usr/local/bin/docker everything worked.
Thanks guys.