This actually worked fine for me for a long time, it's the new framework inside hypervisor. But suddenly I could no long pull docker images. Turns out that Reddit has the answer, if you flip this on, it makes disk access slower and also break networking, so probably do not want to use it.
You are warned. Just go to the Docker.app Preferences and in Experimental uncheck the virtualization framework.
As an aside, I still have a broken installation so if you have the same problems, you can uninstall all the Docker Preferences by going to the Docker App choosing Troubleshoot and click on reset to factory settings to make sure it isn't something like the docker login.
I also had a problem with my Microk8s installation and Docker was reporting it didn't work, so back to having to do a
brew install multipass microk8s and you also have to clean out the
~/.kube/config since it will have the old installation information which isn't super useful