Docker is stuck starting, no log entries explaining

Expected behavior

Start docker app, it should start

Actual behavior

Docker stays stuck in starting state, apparently because osxfs isn’t running

Information

OS X: version 10.11.5 (build: 15F34)
Docker.app: version v1.11.1-beta13.1
Running diagnostic tests:
[OK]      Moby booted
[OK]      driver.amd64-linux
[OK]      vmnetd
[ERROR]   osxfs            com.docker.osxfs is not running
[OK]      osxfs
[OK]      db
[OK]      slirp
[OK]      menubar
[OK]      environment
[OK]      Docker
[OK]      VT-x
Error exec: echo "00000003.0000f3a6" | nc -U /Users/offby1/Library/Containers/com.docker.docker/Data/@connect > /tmp/20160601-114344/diagnostics.tar: exit 1
Docker logs are being collected into /tmp/20160601-114344.tar.gz
Most specific failure is: com.docker.osxfs is not running
Your unique id is: 1C42A688-C65B-44D9-91D6-A63F11324139
Please quote this in all correspondence.

Steps to reproduce the behavior

I had a similar problem. Docker was stuck in Starting… after a recent upgrade.

Resetting to Factory defaults seems to have cleared it up.