Thank you! In case it helps anyone… I had tried to bump up my resources in Docker Desktop and then suddenly docker backend could no longer start and docker desktop could not start properly either (so the changes could not be reverted via the Desktop UI). I was finally able to get it to work again by editing this config file (manually changing the values I had adjusted back to previous values), killing ‘docker’ processes in Activity Monitor, and opening Docker Desktop again.
Thank you! This saved my ass today. I needed more space so I followed the Docker docs and did what it said: Change the Disk Image Location to another drive with plenty of space. After it restarted I had lost all of my containers, images, etc. About 2 hours later I came across this post and quit docker desktop, set the location back to the original, and restarted docker desktop. Got everything back