moby: Windows - 'docker pull microsoft/nanoserver' - ProcessBaseLayer: The parameter is incorrect

Description

I’m getting the same error on two machines (One Windows 10 build 14931, the other is Windows Server 2016 RTM). I have a few other machines where I do not get these errors.

Pulling microsoft/nanoserver image gets error:

exit status 1: output: ProcessBaseLayer C:\ProgramData\docker\windowsfilter[guid]: The parameter is incorrect.

Steps to reproduce the issue:

1. Install latest Docker per MSDN instructions here
2. Execute step with 'docker pull microsoft/nanoserver
3. Get above error

Describe the results you received: The image fails to extract, not listed in ‘docker images’

Describe the results you expected: Image to download, be available

Additional information you deem important (e.g. issue happens only occasionally):

Output of dockerd -D during pull:

time="2016-10-18T23:40:16.545940700-05:00" level=debug msg="Calling GET /v1.25/info"
time="2016-10-18T23:40:16.550805600-05:00" level=debug msg="Calling POST /v1.25/images/create?fromImage=microsoft%2Fnanoserver&tag=latest"
time="2016-10-18T23:40:16.550805600-05:00" level=debug msg="Trying to pull microsoft/nanoserver from https://registry-1.docker.io v2"
time="2016-10-18T23:40:16.989814300-05:00" level=debug msg="Increasing token expiration to: 60 seconds"
time="2016-10-18T23:40:17.230586700-05:00" level=debug msg="Pulling ref from V2 registry: microsoft/nanoserver:latest"
time="2016-10-18T23:40:17.657121600-05:00" level=debug msg="pulling blob \"sha256:94b4ce7ac4c7c7d4ed75ac2bd9359a87204ad2d5a909759d8e77953874d8e7c2\""
time="2016-10-18T23:40:17.657121600-05:00" level=debug msg="pulling blob \"sha256:5496abde368a3dd39999745bf998c877ddc6a390a943bc3fd99ffaabf728ed88\""
time="2016-10-18T23:40:17.660789600-05:00" level=debug msg="Pulling sha256:94b4ce7ac4c7c7d4ed75ac2bd9359a87204ad2d5a909759d8e77953874d8e7c2 from foreign URL https://go.microsoft.com/fwlink/?linkid=830395"
time="2016-10-18T23:40:17.661800100-05:00" level=debug msg="Pulling sha256:5496abde368a3dd39999745bf998c877ddc6a390a943bc3fd99ffaabf728ed88 from foreign URL https://go.microsoft.com/fwlink/?linkid=830191"
time="2016-10-18T23:40:24.504368600-05:00" level=debug msg="Downloaded 94b4ce7ac4c7 to tempfile C:\\Users\\me\\AppData\\Local\\Temp\\GetImageBlob477680239"
time="2016-10-18T23:40:39.512208900-05:00" level=debug msg="Downloaded 5496abde368a to tempfile C:\\Users\\me\\AppData\\Local\\Temp\\GetImageBlob598086402"
time="2016-10-18T23:40:39.512708900-05:00" level=debug msg="hcsshim::CreateLayer Flavour 1 ID f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27 parent "
time="2016-10-18T23:40:39.515208700-05:00" level=debug msg="hcsshim::CreateLayer  - succeeded id=f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27 parent= flavour=1"
time="2016-10-18T23:40:54.593270700-05:00" level=debug msg="Cleaning up layer f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27: re-exec error: exit status 1: output: ProcessBaseLayer C:\\ProgramData\\docker\\windowsfilter\\f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27: The parameter is incorrect."
time="2016-10-18T23:40:54.593755800-05:00" level=debug msg="hcsshim::DestroyLayer Flavour 1 ID f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27"
time="2016-10-18T23:40:57.624805000-05:00" level=debug msg="hcsshim::DestroyLayer succeeded flavour=1 id=f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27"
time="2016-10-18T23:40:57.631897800-05:00" level=error msg="Error trying v2 registry: failed to register layer: re-exec error: exit status 1: output: ProcessBaseLayer C:\\ProgramData\\docker\\windowsfilter\\f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27: The parameter is incorrect."
time="2016-10-18T23:40:57.631897800-05:00" level=error msg="Attempting next endpoint for pull after error: failed to register layer: re-exec error: exit status 1: output: ProcessBaseLayer C:\\ProgramData\\docker\\windowsfilter\\f9a89de80f3d37554b8cf2188edf530ee3804649e46cf423a0446d7284845e27: The parameter is incorrect."

Output of docker version:

Client:
 Version:      1.13.0-dev
 API version:  1.25
 Go version:   go1.7.1
 Git commit:   cd0e399
 Built:        Mon Oct 17 23:06:56 2016
 OS/Arch:      windows/amd64

Server:
 Version:      1.13.0-dev
 API version:  1.25
 Go version:   go1.7.1
 Git commit:   cd0e399
 Built:        Mon Oct 17 23:06:56 2016
 OS/Arch:      windows/amd64

Output of docker info:

Containers: 0
 Running: 0
 Paused: 0
 Stopped: 0
Images: 0
Server Version: 1.13.0-dev
Storage Driver: windowsfilter
 Windows:
Logging Driver: json-file
Plugins:
 Volume: local
 Network: nat null overlay
Swarm: inactive
Default Isolation: process
Kernel Version: 10.0 14393 (14393.321.amd64fre.rs1_release_inmarket.161004-2338)
Operating System: Windows Server 2016 Standard
OSType: windows
Architecture: x86_64
CPUs: 2
Total Memory: 3.89 GiB
Name: srv
ID: SWVX:62AL:DNL7:I4YB:KKID:EE3X:ODHW:O4LI:KZ3H:BAYB:TYG2:YHSM
Docker Root Dir: C:\ProgramData\docker
Debug Mode (client): false
Debug Mode (server): false
Registry: https://index.docker.io/v1/
Insecure Registries:
 127.0.0.0/8
Live Restore Enabled: false

Additional environment details (AWS, VirtualBox, physical, etc.): physical machines