In my case, the overlay2 folder had been inflated from the hadoop jobcache data after some time. Clearing it recovered the space.
Check what files/folders are causing the inflation.
>> sudo du -sh ~/.local/share/docker/overlay2/e586dc9966c4c2849d71a1cb99fe00a078d0abb780adf9ccaceec2b471684496//diff/tmp/hadoop-root/mapred/local/localRunner/* | sort -h
146G ~/.local/share/docker/overlay2/e586dc9966c4c2849d71a1cb99fe00a078d0abb780adf9ccaceec2b471684496//diff/tmp/hadoop-root/mapred/local/localRunner/root