Error on first build after installing Docker for mac

Expected behavior

The container should build.

Actual behavior

ray$ docker build .
Error response from daemon: Bad response from Docker engine


Had Docker Tools installed and running
rebooted machine
installed Docker for Mac & ran it
opened shell (ITerm2)
navigated to directory containing Dockerfile
entered “docker build .”

** The log contains ***

May 24 17:39:38 vampire Docker[1637] : Symlinks are not correctly installed.

Manually uninstalled Docker Tools & Docker for mac

trash /applications/docker
rm /usr/loca/bin/docker*

then reinstalled after reboot, got same behavior.

pinata diagnose -u
OS X: version 10.11.5 (build: 15F34) version v1.11.1-beta12
Running diagnostic tests:
[OK] Moby booted
[OK] driver.amd64-linux
[OK] vmnetd
[OK] osxfs
[OK] db
[OK] slirp
[OK] menubar
[OK] environment
[OK] Docker
[OK] VT-x
Docker logs are being collected into /tmp/20160524-175257.tar.gz
Most specific failure is: No error was detected
Your unique id is: 620FF52A-6268-4C75-8FED-4DDD2A83455E
Please quote this in all correspondence.

Docker File (edited)

FROM alpine:latest


RUN apk update
RUN apk upgrade
ADD ./ /
RUN chmod 700 /
RUN rm /
ENTRYPOINT ["/bin/sh"]

commented out code removed here.

Steps to reproduce the behavior

See Above