moby: Windows 2016 Swarm service error - "HNS failed with error : Element not found"

Description

When I create a swarm service on Windows 2016 with a published plot I get the following error: HNS failed with error : Element not found - the error isn’t present with docker run and if I don’t publish a port the container is created (albeit without being on the Swarm)

I have the required KB update installed.

Steps to reproduce the issue:

1. Windows 2016 w/ overlay driver KB update
2. Swarm init
3. docker service create --name watch --publish 8080:8080 -e suppress_lock=true alexellis2/golang-function-windows

I’ve pushed the image to the hub, if this helps - alexellis2/golang-function-windows

Describe the results you received:

0/1 replicas - “HNS failed with error : Element not found”

I’ve also tried docker network create with an explicitly named overlay network. It gave the same error.

Describe the results you expected:

1/1 replicas etc

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

Output of docker version:

Client:
 Version:      17.05.0-ce-rc1
 API version:  1.29
 Go version:   go1.7.5
 Git commit:   2878a85
 Built:        Wed Apr 12 19:43:25 2017
 OS/Arch:      windows/amd64

Server:
 Version:      17.05.0-ce-rc1
 API version:  1.29 (minimum version 1.24)
 Go version:   go1.7.5
 Git commit:   2878a85
 Built:        Wed Apr 12 19:43:25 2017
 OS/Arch:      windows/amd64
 Experimental: false

Output of docker info:

Containers: 2
 Running: 0
 Paused: 0
 Stopped: 2
Images: 40
Server Version: 17.05.0-ce-rc1
Storage Driver: windowsfilter
 Windows:
Logging Driver: json-file
Plugins:
 Volume: local
 Network: l2bridge l2tunnel nat null overlay transparent
Swarm: active
 NodeID: mhzpvgocv0xgmxiwi866v5ekr
 Is Manager: true
 ClusterID: 9hwhwdd46hwtn4u8kubxpujzy
 Managers: 1
 Nodes: 1
 Orchestration:
  Task History Retention Limit: 5
 Raft:
  Snapshot Interval: 10000
  Number of Old Snapshots to Retain: 0
  Heartbeat Tick: 1
  Election Tick: 3
 Dispatcher:
  Heartbeat Period: 5 seconds
 CA Configuration:
  Expiry Duration: 3 months
 Node Address: 147.75.205.178
 Manager Addresses:
  147.75.205.178:2377
Default Isolation: process
Kernel Version: 10.0 14393 (14393.1066.amd64fre.rs1_release_sec.170327-1835)
Operating System: Windows Server 2016 Standard Evaluation
OSType: windows
Architecture: x86_64
CPUs: 8
Total Memory: 31.92GiB
Name: W2016-1
Docker Root Dir: C:\ProgramData\docker
Debug Mode (client): false
Debug Mode (server): false
Registry: https://index.docker.io/v1/
Experimental: false
Insecure Registries:
 127.0.0.0/8
Live Restore Enabled: false

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

Provisioned on a cloud host.

Thought it might be worth CC/ing @StefanScherer @friism