Docker cant find local images on macbook m1

Description

When building an image with a FROM local-image:latest statement with local-image being
present (in my case offerplace-shared:latest), Docker anyway tries to pull that image from docker.io and fails.
Since there seem to be any issues with image names that contain a dash, I also tried to replace
that part with a repository name: offerplace/shared:latest, but to no avail - it still tries to pull it.

Steps to reproduce the issue:

1. Build image local/image1
2. Build image local/image2, with a FROM local/image1:latest statement
3. Watch it failing

Describe the results you received:

Docker fails with the following error on my machine:

#1 [internal] load build definition from Dockerfile
#1 sha256:bb8fff504e2f268680b3eb7591394abfda1b2584b1e909984c56f0d067f89866
#1 transferring dockerfile: 511B done
#1 DONE 0.0s
#2 [internal] load .dockerignore
#2 sha256:f8cf604e196078a17ce397b978e6abb30bc09501f5d3094cfd91ee619b2e8483
#2 transferring context: 2B done
#2 DONE 0.0s
#3 [internal] load metadata for docker.io/library/openjdk:11-jre-slim
#3 sha256:0a99f1463278d5e63857a5e8637c92992bf2cd37d95a42501fa5494f1d624517
#3 CANCELED
#4 [internal] load metadata for docker.io/offerplace/shared:latest
#4 sha256:38ed34553b1dcac3fdf787bb8f99802fc2940aced9fbdcdf41bfab9b3f7f8bfd
#4 ERROR: pull access denied, repository does not exist or may require authorization: server message: insufficient_scope: authorization failed
------
 > [internal] load metadata for docker.io/offerplace/shared:latest:
------
failed to solve with frontend dockerfile.v0: failed to create LLB definition: pull access denied, repository does not exist or may require authorization: server message: insufficient_scope: authorization failed

Describe the results you expected:

The build does not fail, since the image exists locally.

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

The issue arised suddenly and permanent without (at least as I remember) changing things.
Even previously successfully built images cannot be built.

Output of docker version:

Client:
 Cloud integration: 1.0.17
 Version:           20.10.8
 API version:       1.41
 Go version:        go1.16.6
 Git commit:        3967b7d
 Built:             Fri Jul 30 19:55:20 2021
 OS/Arch:           darwin/arm64
 Context:           default
 Experimental:      true

Server: Docker Engine - Community
 Engine:
  Version:          20.10.8
  API version:      1.41 (minimum version 1.12)
  Go version:       go1.16.6
  Git commit:       75249d8
  Built:            Fri Jul 30 19:53:34 2021
  OS/Arch:          linux/arm64
  Experimental:     false
 containerd:
  Version:          1.4.9
  GitCommit:        e25210fe30a0a703442421b0f60afac609f950a3
 runc:
  Version:          1.0.1
  GitCommit:        v1.0.1-0-g4144b63
 docker-init:
  Version:          0.19.0
  GitCommit:        de40ad0

Output of docker info:

Client:
 Context:    default
 Debug Mode: false
 Plugins:
  buildx: Build with BuildKit (Docker Inc., v0.6.1-docker)
  compose: Docker Compose (Docker Inc., v2.0.0-rc.2)
  scan: Docker Scan (Docker Inc., v0.8.0)

Server:
 Containers: 0
  Running: 0
  Paused: 0
  Stopped: 0
 Images: 3
 Server Version: 20.10.8
 Storage Driver: overlay2
  Backing Filesystem: extfs
  Supports d_type: true
  Native Overlay Diff: true
  userxattr: false
 Logging Driver: json-file
 Cgroup Driver: cgroupfs
 Cgroup Version: 1
 Plugins:
  Volume: local
  Network: bridge host ipvlan macvlan null overlay
  Log: awslogs fluentd gcplogs gelf journald json-file local logentries splunk syslog
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 io.containerd.runtime.v1.linux runc
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: e25210fe30a0a703442421b0f60afac609f950a3
 runc version: v1.0.1-0-g4144b63
 init version: de40ad0
 Security Options:
  seccomp
   Profile: default
 Kernel Version: 5.10.47-linuxkit
 Operating System: Docker Desktop
 OSType: linux
 Architecture: aarch64
 CPUs: 4
 Total Memory: 1.942GiB
 Name: docker-desktop
 ID: DNCI:7JKR:A2UM:CRJ5:SFVA:7GNU:6NKE:4CEC:I3IB:Y5U2:W4TD:W74C
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 HTTP Proxy: http.docker.internal:3128
 HTTPS Proxy: http.docker.internal:3128
 Registry: https://index.docker.io/v1/
 Labels:
 Experimental: false
 Insecure Registries:
  127.0.0.0/8
 Live Restore Enabled: false

Additional environment details (AWS, VirtualBox, physical, etc.):
MacBook Pro (13-inch, M1, 2020)
macOS Big Sur 11.3.1
Processor Apple M1

The issue names no source file or test; begin by reproducing the Dockerfile steps with local/image1 and local/image2 on the reported Docker 20.10.8 Docker Desktop setup. Trace the build path that resolves the FROM image and verify that a locally available image is used without an unauthorized registry pull.