moby: hcsshim::PrepareLayer failed in Win32: The parameter is incorrect

Is this a bug or am I missing something? When I run docker-compose build I get this error:

Building webapplication1
Step 1/17 : FROM microsoft/aspnetcore:2.0-nanoserver-sac2016 AS base
 ---> 7f9d7dc1860e
Step 2/17 : WORKDIR /app
 ---> Using cache
 ---> dd80e4a90ee4
Step 3/17 : EXPOSE 80
 ---> Using cache
 ---> 61d4c528d49e
Step 4/17 : FROM microsoft/aspnetcore-build:2.0-nanoserver-sac2016 AS build
 ---> 1f96313b74e3
Step 5/17 : WORKDIR /src
ERROR: Service 'webapplication1' failed to build: hcsshim::PrepareLayer failed in Win32: The parameter is incorrect. (0x57) layerId=a96bac7ce3ed61f622fc7ec84113221af4ee9a24d792b8a0c7785c6b316c3512 flavour=1

docker version:

Client:
 Version:       18.03.0-ce
 API version:   1.37
 Go version:    go1.9.4
 Git commit:    0520e24
 Built: Wed Mar 21 23:06:28 2018
 OS/Arch:       windows/amd64
 Experimental:  false
 Orchestrator:  swarm

Server:
 Engine:
  Version:      18.03.0-ce
  API version:  1.37 (minimum version 1.24)
  Go version:   go1.9.4
  Git commit:   0520e24
  Built:        Wed Mar 21 23:21:06 2018
  OS/Arch:      windows/amd64
  Experimental: false

docker info:

Containers: 4
 Running: 1
 Paused: 0
 Stopped: 3
Images: 4
Server Version: 18.03.0-ce
Storage Driver: windowsfilter
 Windows:
Logging Driver: json-file
Plugins:
 Volume: local
 Network: ics l2bridge l2tunnel nat null overlay transparent
 Log: awslogs etwlogs fluentd gelf json-file logentries splunk syslog
Swarm: inactive
Default Isolation: hyperv
Kernel Version: 10.0 14393 (14393.2125.amd64fre.rs1_release.180301-2139)
Operating System: Windows 10 Enterprise
OSType: windows
Architecture: x86_64
CPUs: 8
Total Memory: 31.85GiB
Name: myComputerName
ID: JBIL:ZT3U:37LT:YMJA:5LDM:PGM7:L7PN:DDVF:HSDN:VI6S:TS72:A67K
Docker Root Dir: C:\ProgramData\Docker
Debug Mode (client): false
Debug Mode (server): true
 File Descriptors: -1
 Goroutines: 25
 System Time: 2018-04-11T10:56:44.0030666-04:00
 EventsListeners: 1
Registry: https://index.docker.io/v1/
Labels:
Experimental: false
Insecure Registries:
 127.0.0.0/8
Live Restore Enabled: false