moby: Server 2016 Container stops working after windows update

Docker images stopped working after latest windows update on Server 2016. I am getting this output when i try to start any container

Error response from daemon: container 3c58f4c888ba8b737d94a6468afa992865eaeafcf193b436e806f7074ea06c46 encountered an error during CreateContainer: failure in a Windows system call: Element not found. (0x490) extra info: {"SystemType":"Container","Name":"3c58f4c888ba8b737d94a6468afa992865eaeafcf193b436e806f7074ea06c46","Owner":"docker","IsDummy":false,"VolumePath":"\\\\?\\Volume{7b7a57d3-1f9e-11e7-a946-b86497fd0a26}","IgnoreFlushesDuringBoot":false,"LayerFolderPath":"C:\\ProgramData\\docker\\windowsfilter\\3c58f4c888ba8b737d94a6468afa992865eaeafcf193b436e806f7074ea06c46","Layers":[{"ID":"6baa1a2b-cb97-5ed9-a8da-4b337af0e060","Path":"C:\\ProgramData\\docker\\windowsfilter\\a8825a5162baa4d4241a545aed9b6e3d3c008337e3bd4b74044c1428d09d2650"},{"ID":"bcbcfe71-448c-566d-a16c-2acb3a268763","Path":"C:\\ProgramData\\docker\\windowsfilter\\05ac6fdda871f2d54d80320bcab1431495e67282e370abc610e7a7660acbbab6"},{"ID":"cbacd853-0778-53dd-bd30-ac3ef9c1e56e","Path":"C:\\ProgramData\\docker\\windowsfilter\\010c63e0b777e436fe101337de6ba47da7e2ccf0ee21929ca21902504e61a503"},{"ID":"37bc5a09-1496-52b3-8692-2621c0360578","Path":"C:\\ProgramData\\docker\\windowsfilter\\e6d3b72e29e1f98731ecfb4532f2b5be201288006d3f81fb1022c492a8806858"},{"ID":"d44b6e9c-e9f9-55c8-9165-c2deb7d49164","Path":"C:\\ProgramData\\docker\\windowsfilter\\2a0c29270f804ec3aa22eefb31029801ae768a7b36bb0dfd0afe76ddc002c7e9"},{"ID":"c0f95d30-c340-50be-97ed-adc39c32d716","Path":"C:\\ProgramData\\docker\\windowsfilter\\6b43ce2930a7bb3a538ff460c2857481161f69186ca1b1f8899cd5f620bd2aab"},{"ID":"f43266d1-ae49-5526-bb52-33ce273e5dcb","Path":"C:\\ProgramData\\docker\\windowsfilter\\4a299537d116fa8e5ddef409db3d6c1352c17eb83dd4bd290056f2b5380e507a"},{"ID":"d3e48e0e-e097-5fcd-a692-960ee56710ee","Path":"C:\\ProgramData\\docker\\windowsfilter\\42e7f3b428ee610a398186cfcbeebbb23c9eb0d766070341bd60485b28c0307b"},{"ID":"5fa0e5e5-2dd0-5720-8b35-d31d2afc6507","Path":"C:\\ProgramData\\docker\\windowsfilter\\9622b6c4c7f9246f523a668b147f9e543fa59f94cfa5dfba05d707ecb23bd55e"},{"ID":"2a72ae77-f10d-549d-9bf2-ddebc0706b6d","Path":"C:\\ProgramData\\docker\\windowsfilter\\fdf35887cf3d9ad0445bac763efd97128ba0c6432e4067a36c87d0f1bd3b9abf"},{"ID":"40c86096-804b-5af5-8ef1-7a884f931382","Path":"C:\\ProgramData\\docker\\windowsfilter\\0877fa50116cffb53e0b8083ba04d55d43276fbdd6e7d77e45687ae031a3b245"},{"ID":"b7aad860-d04d-546e-877a-dfed431c9e79","Path":"C:\\ProgramData\\docker\\windowsfilter\\c4b6ce9ebf9c3bab795d11003c9e4d4cc1c2bfbcf88a5943df042879ec6badf4"},{"ID":"a7ab8670-ed32-5527-babc-2a8e44120be4","Path":"C:\\ProgramData\\docker\\windowsfilter\\3edc138fd0fb48e4a5c321610f6c7f33ad1e2f2c96ffd2be9ec18042f8386990"},{"ID":"15a5f697-7eb5-5bca-93aa-0e6f5f1015ea","Path":"C:\\ProgramData\\docker\\windowsfilter\\a00efb169b32576df36d510a65198d16f53357bd840b0c808c3a7359c0acabc8"},{"ID":"ef4b94ad-e950-5e62-8770-451197305dc8","Path":"C:\\ProgramData\\docker\\windowsfilter\\654c1ddb91cb33ad056b446fadfdbfd42e9d06ceb7d6780a4dd198cc5eb4d98d"},{"ID":"baf50929-377c-5c10-88cd-9ce718206b36","Path":"C:\\ProgramData\\docker\\windowsfilter\\b11800ae1c920d2b18bd8b75dfbef033b4e2f9a34690a4f87105f904f9257b8b"},{"ID":"c7b48fd6-e6c7-5a0a-8183-e7d043a1a896","Path":"C:\\ProgramData\\docker\\windowsfilter\\399329fc2495e65e53fda714876fb2e300470c45ea767ebd5d99ba552857cbcb"},{"ID":"ed8ca582-836a-5fd4-9362-7b256b291364","Path":"C:\\ProgramData\\docker\\windowsfilter\\38f49160d648c42c53d3de4a3f51166583aeb3baac79fb267a232bb6b6bf477e"},{"ID":"024d594c-4145-5845-8829-25797203abca","Path":"C:\\ProgramData\\docker\\windowsfilter\\8edb4e2573d3faa6e8f31459a3b92508dfa4264b7208b25351b7bdc467735884"},{"ID":"ae0f7bd9-0546-5984-a40a-96b82bcfab57","Path":"C:\\ProgramData\\docker\\windowsfilter\\22502442c82812a70107197d1e79fa48290eb27b20f450f16e8be9e257b8ce45"},{"ID":"03588f22-ff38-521d-90b4-b3c22a35789e","Path":"C:\\ProgramData\\docker\\windowsfilter\\a85beae5ecb641781e9c256aefb376d25c89177dbda3992b8e35bb11588cf7e6"},{"ID":"87d0f0df-f8c3-56fe-a28d-7c97a11745d7","Path":"C:\\ProgramData\\docker\\windowsfilter\\e38d61ee494fe325bcc360c563c60d4a21633b2ad1c3f4f1fddf8da516fb6c02"},{"ID":"f44dbec1-5859-53ef-b1b5-8a8659ef0949","Path":"C:\\ProgramData\\docker\\windowsfilter\\2b0582b051d992153e45dbc113f84fd6cf1bb3c8e53730525feb54686df9649d"},{"ID":"2ea876e2-a32d-5620-8b51-95ee1a38fd3e","Path":"C:\\ProgramData\\docker\\windowsfilter\\ecea1a6a05d7c2cdc00dc2d74319c3b436955aeea824ee3ccab5c17994ab2bd8"}],"HostName":"3c58f4c888ba","MappedDirectories":[],"HvPartition":false,"EndpointList":["88cbb995-a035-4c39-8003-a28f3e4eba1b"],"Servicing":false,"AllowUnqualifiedDNSQuery":true}

Docker version

`Client: Version: 17.03.1-ee-3 API version: 1.27 Go version: go1.7.5 Git commit: 3fcee33 Built: Thu Mar 30 19:31:22 2017 OS/Arch: windows/amd64

Server: Version: 17.03.1-ee-3 API version: 1.27 (minimum version 1.24) Go version: go1.7.5 Git commit: 3fcee33 Built: Thu Mar 30 19:31:22 2017 OS/Arch: windows/amd64 Experimental: false`