Docker: Error response from daemon: hcsshim::ExpandScratchSize failed in Win32: The system cannot find the file specified. (0x2)

I have my Docker desktop running and when I do build solution or run .Net docker( run -it mcr.microsoft.com/dotnet/framework/sdk:4.8) , I am getting below error.

hcsshim::ExpandScratchSize failed in Win32: The system cannot find the file specified. (0x2)

I have tried below items so far but no luck

  1. Adding storage to docker daemon config - “storage-opts”: [ “size=20G”]
  2. Do system and image prune
  3. Uninstall and re-install docker desktop

Any help would be appreciated

Any luck with this yet? I am facing the same issue