moby: Cannot run any container after install

Cannot run any container - errors in docker.log

Docker version:

root@SFE136:/var/log/upstart# docker version
Client:
 Version:      1.10.1
 API version:  1.22
 Go version:   go1.5.3
 Git commit:   9e83765
 Built:        Thu Feb 11 19:27:08 2016
 OS/Arch:      linux/amd64

Server:
 Version:      1.10.1
 API version:  1.22
 Go version:   go1.5.3
 Git commit:   9e83765
 Built:        Thu Feb 11 19:27:08 2016
 OS/Arch:      linux/amd64

Docker info:

root@SFE136:/var/log/upstart# docker version
Client:
 Version:      1.10.1
 API version:  1.22
 Go version:   go1.5.3
 Git commit:   9e83765
 Built:        Thu Feb 11 19:27:08 2016
 OS/Arch:      linux/amd64

Server:
 Version:      1.10.1
 API version:  1.22
 Go version:   go1.5.3
 Git commit:   9e83765
 Built:        Thu Feb 11 19:27:08 2016
 OS/Arch:      linux/amd64
root@SFE136:/var/log/upstart# docker info
Containers: 1
 Running: 0
 Paused: 0
 Stopped: 1
Images: 2
Server Version: 1.10.1
Storage Driver: aufs
 Root Dir: /var/lib/docker/aufs
 Backing Filesystem: extfs
 Dirs: 10
 Dirperm1 Supported: false
Execution Driver: native-0.2
Logging Driver: json-file
Plugins: 
 Volume: local
 Network: bridge null host
Kernel Version: 3.13.0-77-generic
Operating System: Ubuntu 14.04.4 LTS
OSType: linux
Architecture: x86_64
CPUs: 4
Total Memory: 7.716 GiB
Name: SFE136
ID: WEBG:YRBV:SOAZ:FPHC:TP3W:IGCT:RG3E:ZA3I:VXIY:J73G:YFXS:BNBP

Uname -a:

root@SFE136:/var/log/upstart# uname -a
Linux SFE136 3.13.0-77-generic #121-Ubuntu SMP Wed Jan 20 10:50:42 UTC 2016 x86_64 x86_64 x86_64 GNU/Linux

Check:

root@SFE136:~# ./check.sh 
warning: /proc/config.gz does not exist, searching other paths for kernel config ...
info: reading kernel config from /boot/config-3.13.0-77-generic ...

Generally Necessary:
- cgroup hierarchy: properly mounted [/sys/fs/cgroup]
- apparmor: enabled and tools installed
- CONFIG_NAMESPACES: enabled
- CONFIG_NET_NS: enabled
- CONFIG_PID_NS: enabled
- CONFIG_IPC_NS: enabled
- CONFIG_UTS_NS: enabled
- CONFIG_DEVPTS_MULTIPLE_INSTANCES: enabled
- CONFIG_CGROUPS: enabled
- CONFIG_CGROUP_CPUACCT: enabled
- CONFIG_CGROUP_DEVICE: enabled
- CONFIG_CGROUP_FREEZER: enabled
- CONFIG_CGROUP_SCHED: enabled
- CONFIG_CPUSETS: enabled
- CONFIG_MEMCG: enabled
- CONFIG_MACVLAN: enabled (as module)
- CONFIG_VETH: enabled (as module)
- CONFIG_BRIDGE: enabled (as module)
- CONFIG_BRIDGE_NETFILTER: enabled
- CONFIG_NF_NAT_IPV4: enabled (as module)
- CONFIG_IP_NF_FILTER: enabled (as module)
- CONFIG_IP_NF_TARGET_MASQUERADE: enabled (as module)
- CONFIG_NETFILTER_XT_MATCH_ADDRTYPE: enabled (as module)
- CONFIG_NETFILTER_XT_MATCH_CONNTRACK: enabled (as module)
- CONFIG_NF_NAT: enabled (as module)
- CONFIG_NF_NAT_NEEDED: enabled
- CONFIG_POSIX_MQUEUE: enabled

Optional Features:
- CONFIG_USER_NS: enabled
- CONFIG_SECCOMP: enabled
- CONFIG_MEMCG_KMEM: enabled
- CONFIG_MEMCG_SWAP: enabled
- CONFIG_MEMCG_SWAP_ENABLED: missing
    (note that cgroup swap accounting is not enabled in your kernel config, you can enable it by setting boot option "swapaccount=1")
- CONFIG_RESOURCE_COUNTERS: enabled
- CONFIG_BLK_CGROUP: enabled
- CONFIG_IOSCHED_CFQ: enabled
- CONFIG_BLK_DEV_THROTTLING: enabled
- CONFIG_CGROUP_PERF: enabled
- CONFIG_CGROUP_HUGETLB: enabled
- CONFIG_NET_CLS_CGROUP: enabled (as module)
- CONFIG_NETPRIO_CGROUP: enabled (as module)
- CONFIG_CFS_BANDWIDTH: enabled
- CONFIG_FAIR_GROUP_SCHED: enabled
- CONFIG_RT_GROUP_SCHED: missing
- CONFIG_EXT3_FS: missing
- CONFIG_EXT3_FS_XATTR: missing
- CONFIG_EXT3_FS_POSIX_ACL: missing
- CONFIG_EXT3_FS_SECURITY: missing
    (enable these ext3 configs if you are using ext3 as backing filesystem)
- CONFIG_EXT4_FS: enabled
- CONFIG_EXT4_FS_POSIX_ACL: enabled
- CONFIG_EXT4_FS_SECURITY: enabled
- Storage Drivers:
  - "aufs":
    - CONFIG_AUFS_FS: enabled (as module)
  - "btrfs":
    - CONFIG_BTRFS_FS: enabled (as module)
  - "devicemapper":
    - CONFIG_BLK_DEV_DM: enabled
    - CONFIG_DM_THIN_PROVISIONING: enabled (as module)
  - "overlay":
    - CONFIG_OVERLAY_FS: missing
  - "zfs":
    - /dev/zfs: missing
    - zfs command: missing
    - zpool command: missing

Environment details (AWS, VirtualBox, physical, etc.):

• Ubuntu 14.04
• Running as root
• Apparmor profile is disabled

Steps to Reproduce:

• Install docker
• docker run hello-world

Actual Results:

root@SFE136:~# docker run hello-world
Unable to find image 'hello-world:latest' locally
latest: Pulling from library/hello-world
03f4658f8b78: Pull complete 
a3ed95caeb02: Pull complete 
Digest: sha256:8be990ef2aeb16dbcb9271ddfe2610fa6658d13f6dfb8bc72074cc1ca36966a7
Status: Downloaded newer image for hello-world:latest
no such file or directory
docker: Error response from daemon: Container command not found or does not exist..

/var/log/upstart/docker.log

ERRO[12001] Handler for POST /v1.22/containers/create returned error: No such image: hello-world:latest 
WARN[12006] exit status 1                                
ERRO[12006] error locating sandbox id c8c6ac31d1e388aef6b443988b99fac2275eb57be9379ed932276376faf365d8: sandbox c8c6ac31d1e388aef6b443988b99fac2275eb57be9379ed932276376faf365d8 not found 
WARN[12006] failed to cleanup ipc mounts:
failed to umount /var/lib/docker/containers/8669f37d445d1c5a3ebae144ff391c6d43346449fe5f6a70cf9537d1028c8d58/shm: invalid argument 
ERRO[12006] Error unmounting container 8669f37d445d1c5a3ebae144ff391c6d43346449fe5f6a70cf9537d1028c8d58: not mounted 
ERRO[12006] Handler for POST /v1.22/containers/8669f37d445d1c5a3ebae144ff391c6d43346449fe5f6a70cf9537d1028c8d58/start returned error: Container command not found or does not exist.