This failure occurs when the C:\ProgramData\DockerDesktop workspace path is initialized by a standard localized user context instead of the NT Authority SYSTEM profile, triggering an installer-side cryptographic or security boundary rejection.
Execute the following script to wipe any stale directory configurations, provision a compliant workspace container, and bind absolute SYSTEM ownership constraints:
# Define absolute system destination target layout
$path = "C:\ProgramData\DockerDesktop"
# Force clear existing resource folders gracefully
if (Test-Path $path) {
Remove-Item -Path $path -Recurse -Force -ErrorAction SilentlyContinue
}
# Re-instantiate the base path architecture fresh
New-Item -ItemType Directory -Path $path -Force
# Extract existing access control schema and instantiate identity contexts
$acl = Get-Acl $path
$systemIdentity = New-Object System.Security.Principal.NTAccount("SYSTEM")
# Assert absolute directory ownership mapping to SYSTEM
$acl.SetOwner($systemIdentity)
# Structure administrative inheritance and full layout permissions
$adminRule = New-Object System.Security.AccessControl.FileSystemAccessRule("Administrators", "FullControl", "ContainerInherit,ObjectInherit", "None", "Allow")
$acl.AddAccessRule($adminRule)
# Commit systemic security changes to disk
Set-Acl $path $acl
Write-Host "Success: Target workspace permissions normalized for $path" -ForegroundColor Green

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