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Docker Engine failed to start after upgraded Docker Desktop to 3.6.0 #11912

Description

@Nutharat

I have upgraded Docker Desktop from 3.5.2 to 3.6.0 and then experiencing issue that Docker Engine failed to start when I start or restart machine. Tried uninstall and reinstall the Docker Desktop but no difference.

Environment:

  • Windows 10 Pro (21H1) OS build 19043.1165.
  • Docker Desktop 3.6.0.
  • Docker settings "Start Docker Desktop when you log in" is selected.
  • Docker Engine configuration "experimental" is true.

Steps to Reproduce Behavior:

  1. Install or upgrade Docker Desktop to 3.6.0.
  2. Restart machine.

Actual Behavior:

Docker Engine failed to start.

System.ServiceProcess.TimeoutException: Time out has expired and the operation has not been completed.
   at System.ServiceProcess.ServiceController.WaitForStatus(ServiceControllerStatus desiredStatus, TimeSpan timeout)
   at Docker.Backend.Processes.WindowsDockerDaemon.TryToStartService(Settings settings, String args, Dictionary`2 env) in C:\workspaces\master-merge\src\github.com\docker\pinata\win\src\Docker.Backend\Processes\WindowsDockerDaemon.cs:line 208
   at System.Web.Http.Controllers.ReflectedHttpActionDescriptor.ActionExecutor.<>c__DisplayClass6_1.<GetExecutor>b__0(Object instance, Object[] methodParameters)
   at System.Web.Http.Controllers.ReflectedHttpActionDescriptor.ExecuteAsync(HttpControllerContext controllerContext, IDictionary`2 arguments, CancellationToken cancellationToken)
--- End of stack trace from previous location where exception was thrown ---
   at System.Runtime.ExceptionServices.ExceptionDispatchInfo.Throw()
   at System.Runtime.CompilerServices.TaskAwaiter.HandleNonSuccessAndDebuggerNotification(Task task)
   at System.Web.Http.Controllers.ApiControllerActionInvoker.<InvokeActionAsyncCore>d__1.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.Runtime.ExceptionServices.ExceptionDispatchInfo.Throw()
   at System.Runtime.CompilerServices.TaskAwaiter.HandleNonSuccessAndDebuggerNotification(Task task)
   at System.Web.Http.Controllers.ActionFilterResult.<ExecuteAsync>d__5.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.Runtime.ExceptionServices.ExceptionDispatchInfo.Throw()
   at System.Runtime.CompilerServices.TaskAwaiter.HandleNonSuccessAndDebuggerNotification(Task task)
   at System.Web.Http.Dispatcher.HttpControllerDispatcher.<SendAsync>d__15.MoveNext()

DockerError-1
DockerError-2
DockerError-3

Expected Behavior:

Docker Engine is running.

Workaround:

Error can be found in event viewer that there was an access denied on file "C:\ProgramData\Docker\panic.log". Delete that file and Docker Engine can start.
DockerError-EventViewer

Note that once Docker Engine is running I can restart without the issue. But if I restart machine I get the error again.

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