Unix Containers on Windows 2016

Question

I created an Azure VM Scaleset with windows 2016, signed in and enabled docker.

What i dont understand is that it looks like in the middle of pulling the unix image down the docker deamon changed to not support unix.

PS C:\Users\adminuser> docker info
Containers: 0
 Running: 0
 Paused: 0
 Stopped: 0
Images: 0
Server Version: 17.10.0-ee-preview-3
Storage Driver: windowsfilter (windows) lcow (linux)
 LCOW:
Logging Driver: json-file
Plugins:
 Volume: local
 Network: ics l2bridge l2tunnel nat null overlay transparent
 Log: awslogs etwlogs fluentd json-file logentries splunk syslog
Swarm: inactive
Default Isolation: process
Kernel Version: 10.0 14393 (14393.2155.amd64fre.rs1_release_1.180305-1842)
Operating System: Windows Server 2016 Datacenter
OSType: windows
Architecture: x86_64
CPUs: 2
Total Memory: 16GiB
Name: nt1vm000000
ID: FAZW:Y7P5:G3IT:DQKI:IQFR:WOVR:U7QX:ELSY:YC5F:NC3G:HL2U:RF5D
Docker Root Dir: C:\ProgramData\docker
Debug Mode (client): false
Debug Mode (server): false
Registry: https://index.docker.io/v1/
Experimental: true
Insecure Registries:
 127.0.0.0/8
Live Restore Enabled: false

PS C:\Users\adminuser> docker run -it ubuntu
Unable to find image 'ubuntu:latest' locally
latest: Pulling from library/ubuntu
d3938036b19c: Extracting [==================================================>]  43.02MB/43.02MB
a9b30c108bda: Download complete
67de21feec18: Download complete
817da545be2b: Download complete
d967c497ce23: Download complete
C:\Program Files\Docker\docker.exe: failed to register layer: failed to start service utility VM (applydiff 4f61c83c7b03
fa8b3c5e021eba223e57b2fc1f111ca50ac4cca9ccf0da515a06): container 4f61c83c7b03fa8b3c5e021eba223e57b2fc1f111ca50ac4cca9ccf
0da515a06_svm encountered an error during CreateContainer: failure in a Windows system call: The data is invalid. (0xd)
extra info: {"SystemType":"container","Name":"4f61c83c7b03fa8b3c5e021eba223e57b2fc1f111ca50ac4cca9ccf0da515a06_svm","Lay
ers":null,"HvPartition":true,"HvRuntime":{"ImagePath":"C:\\Program Files\\Linux Containers","LinuxInitrdFile":"initrd.im
g","LinuxKernelFile":"bootx64.efi"},"ContainerType":"linux","TerminateOnLastHandleClosed":true}.
See 'C:\Program Files\Docker\docker.exe run --help'.
PS C:\Users\adminuser> docker run -it ubuntu
C:\Program Files\Docker\docker.exe: error during connect: Post http://%2F%2F.%2Fpipe%2Fdocker_engine/v1.33/containers/create: open //./pipe/docker_engine: The system cannot find the file specified. In the default daemon configuratio
ust be run elevated to connect. This error may also indicate that the docker daemon is not running.
See 'C:\Program Files\Docker\docker.exe run --help'.


PS C:\Users\adminuser> docker --version
Docker version 17.10.0-ee-preview-3, build 1649af8
PS C:\Users\adminuser> docker info
Containers: 0
 Running: 0
 Paused: 0
 Stopped: 0
Images: 0
Server Version: 17.10.0-ee-preview-3
Storage Driver: windowsfilter
 Windows:
Logging Driver: json-file
Plugins:
 Volume: local
 Network: ics l2bridge l2tunnel nat null overlay transparent
 Log: awslogs etwlogs fluentd json-file logentries splunk syslog
Swarm: inactive
Default Isolation: process
Kernel Version: 10.0 14393 (14393.2155.amd64fre.rs1_release_1.180305-1842)
Operating System: Windows Server 2016 Datacenter
OSType: windows
Architecture: x86_64
CPUs: 2
Total Memory: 16GiB
Name: nt1vm000000
ID: FAZW:Y7P5:G3IT:DQKI:IQFR:WOVR:U7QX:ELSY:YC5F:NC3G:HL2U:RF5D
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

PS C:\Users\adminuser> Restart-Service Docker
Restart-Service : Failed to start service 'Docker (Docker)'.
At line:1 char:1
+ Restart-Service Docker
+ ~~~~~~~~~~~~~~~~~~~~~~
    + CategoryInfo          : OpenError: (System.ServiceProcess.ServiceController:ServiceController) [Restart-Service], ServiceCommandException
    + FullyQualifiedErrorId : StartServiceFailed,Microsoft.PowerShell.Commands.RestartServiceCommand

PS C:\Users\adminuser> docker run -it ubuntu
Unable to find image 'ubuntu:latest' locally
latest: Pulling from library/ubuntu
C:\Program Files\Docker\docker.exe: no matching manifest for windows/amd64 in the manifest list entries.
See 'C:\Program Files\Docker\docker.exe run --help'.
PS C:\Users\adminuser>

Have anyone succeded running unix containers on azure windows machiens with nested virtualization?