Exit status 17: backend: no such file or directory
While trying to load this commit as a Dev Environment with Docker Desktop 4.2.0 (70708) on Mac OS 11.6, I get this non-intermittent failure:
Detecting main repo language...
Detected 'Go' as the main repository language.
could not find /var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-charming_wright/proxy/var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-charming_wright/proxy: stat /var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-charming_wright/proxy/var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-charming_wright/proxy: no such file or directory
exit status 17
This is reproducible even with clicking the link under "Try running a sample" on the dashboard:

Although, this time it complained about a different folder missing:
Detected 'Go' as the main repository language.
could not find /var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-pensive_wozniak/backend/var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-pensive_wozniak/backend: stat /var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-pensive_wozniak/backend/var/folders/1f/wfpcf_k14gx_kx8sxsw3473m0000gn/T/volume-compose-dev-env-pensive_wozniak/backend: no such file or directory
exit status 17
Hello @nileshtrivedi
Compose v1 and v2 behave differently , I'll try to figure out what should be the right behaviour and propose a PR to fix that.
By the way the issue isn't in this sample, and you can fix this, for the moment, by turning off the use of Compose V2 in Docker Desktop

A fix has been merged this morning, the sample should run fine with Compose V2 in the next release of Docker Desktop (maybe 4.3.0)
Still see the same issue with Docker Desktop v4.3.0(71786) and Docker Compose v2.2.1. Tested both "Use Docker Compose V2" checked and unchecked. Same error message:
Preparing to clone inside a volume
Installing credential helpers... done
Cloning into '/code'...
remote: Enumerating objects: 63, done.
remote: Counting objects: 100% (63/63), done.remote: Counting objects: 47% (30/63)remote: Counting objects: 17% (11/63)remote: Counting objects: 11% (7/63)
remote: Compressing objects: 100% (49/49), done.remote: Compressing objects: 83% (41/49)
remote: Total 63 (delta 19), reused 40 (delta 10), pack-reused 0
Receiving objects: 100% (63/63), 15.62 KiB | 533.00 KiB/s, done.Receiving objects: 87% (55/63)Receiving objects: 50% (32/63)Receiving objects: 33% (21/63)
Resolving deltas: 100% (19/19), done.
Detecting main repo language...
Detected 'Go' as the main repository language.
Error response from daemon: invalid mount config for type "bind": bind source path does not exist: /var/folders/g9/96m0c6rx2297y5f13b8kbg9m009nff/T/volume-compose-dev-env-peaceful_chatelet
Still getting this error on Ubuntu 22.04:
Error response from daemon: invalid mount config for type "bind": bind source path does not exist: /tmp/volume-compose-dev-env-clever_ishizaka

The Enable Docker Compose V1/V2 compatibility mode option is enabled:

Docker Desktop version is 4.8.1 (78998):

I have the exact same issue
It worked as expected for me using latest Docker Desktop (v4.10.1).
Add "/tmp" folder to Settings/Resources/File sharing, if you meet problem like me: "Error response from daemon: invalid mount config for type "bind": bind source path does not exist: /tmp/volume-compose-dev-env-romantic_brown"