MobyLinux VM not created (file not found) - Docker Service stuck at "starting"

The Docker for Windows service never fully starts after installing the latest Docker for Windows (17.03.1-CE). It appears to hang when creating the Moby Linux VM. In the Windows Event Viewer (Hyper-V-VMMS) logs, I see the following error:

The absolute path ‘C:\Program Files\Docker\Docker\Resources\mobylinux.iso’ is valid for the ‘’ ISO Disk Image pool, but references a file that does not exist.

I also see this error in the Hyper-V-Worker event logs

‘MobyLinuxVM’: The Volume Shadow Copy integration service is not enabled. (Virtual machine 5AF5F200-B8C1-46EB-BE26-409084835427)

I tried uploading diagnostics, but that operation is hung. I also cannot seem to interact with Hyper-VMMS (management system) as all Get-VM and Get-VMNetworkAdapter commands hang. There is nothing useful in the Docker for Windows logs either.

I’m running the latest version of Windows 10 flight (16170.rs_prerelease.170331-1532)

Can I ask you to open an issue with details here?

Please someone help me how to check the mobylinux under Hyper-V after installation of Docker. If Docker does not install Mobylinux on its own! what is the next step or complete tutorial for installing Docker is efficient way?