MacOS - Docker Desktop - No Space Left on the Device

I am new to MacOS and I installed Docker Desktop on my machine. It is a fresh installation and I am trying to build and run an image. The images is roughly ~700MBs. It builds perfectly, but when I try to run the image, it fails with below error. Note: I dont have any other containers runnning and there are no volumes as well.

` ```
LM-ILB-SUJEET:app-1 sujeetkumar.padhi$ docker run -d app:1.0
docker: Error response from daemon: no space left on device.
See 'docker run --help'.

Other details:

LM-ILB-SUJEET:app-1 sujeetkumar.padhi$ docker images
REPOSITORY   TAG       IMAGE ID       CREATED          SIZE
app          1.0       b13d65be6ffb   56 seconds ago   635MB

LM-ILB-SUJEET:app-1 sujeetkumar.padhi$ docker system df
TYPE            TOTAL     ACTIVE    SIZE      RECLAIMABLE
Images          1         0         635.1MB   635.1MB (100%)
Containers      0         0         0B        0B
Local Volumes   0         0         0B        0B
Build Cache     14        0         119.8kB   119.8kB

Disk Image location:

Disk Size:

Preferences:

I know many people have faced this issue and I tried solving the issue by following all those articles, but no luck. Please help.