On my Linux Desktop, I mount a seprate disk partition to ~/.docker/ directory with xfs filesystem. And installed desktop (version 4.17.0), start it and run containers normally.
But when I was installing a extntion (for example disk-usage-extension), it failed with below error:
Failed to install extension: installation could not be completed due to: rename /tmp/2159132497-ext-install/docker_disk-usage-extension /home/mengz/.docker/desktop/extensions/docker_disk-usage-extension: invalid cross-device link
Encountered this issue also and it relates to different fstypes between /tmp and /home and/or, different pools with the likes of ZFS. A workaround that could technically get round this is to have /tmp on the same filesystem as /home.
In testing an extension we did this (/tmp to /tmp.bak, then /tmp on same fs as /home), installed the extension and then reverted.
Granted, due to the nature of this I’m not recommending it as an approach but, it’s a workaround for the brave (which will be most here who run Linux as an OS )