Docker Desktop Windows 2.2.0.0 containers can't find files

I also updated to version 2.2.0.0 today and after that the folder sharing between local (Windows) host and container does not work anymore. The command
docker run --rm -v C:\dev\Tests:/tests -it test/testcafe -e chromium:headless /tests/Login.js
was working fine on my previous docker version, but since the update it returns an error:
docker: Error response from daemon: error while creating mount source path '/host_mnt/c/dev/Tests': mkdir /host_mnt/c/dev: file exists.
This is regardless of enabling drive sharing globally in the settings, or on demand via cmd windows.

Furthermore, sharing on demand does only work in Windows cmd, but not in Powershell, where the command fails with the error above straight away without sharing popup being displayed.