Ok so I stumbled across another thread in the forum https://forums.docker.com/t/volume-mounts-in-windows-does-not-work/10693/25 and noticed some issues with passwords containing special characters. In my case, my password contained an “@”. Upon changing it to use no special characters, the drive sharing enabled with no issues.
Would still be nice to see a more specific error about this in the logs or provide support for passwords with special characters.