docker pull large image Fails (` ApplyLayer exit status 1 stdout: stderr: invalid argument`)

### Description

Hello -

The issue is happening when trying to `docker pull` an image of 1.2GB either on fedora 35, Ubuntu impish.
The error is:
```
5dcbdc60ea6b: Already exists
8671113e1c57: Already exists
e5adf43c9842: Extracting [==================================================>] 146.5MB/146.5MB
1a61808e3bf3: Download complete
ffffd5d9f875: Download complete
d20c473b524d: Download complete
60e4da6dbe2c: Download complete
002de968eae0: Download complete
failed to register layer: ApplyLayer exit status 1 stdout: stderr: invalid argument
```

Setup: rootless Docker
Docker storage: tried btrfs, overlay2, overlay-FS
lima version: 0.8.2
network: vmnet

docker info:
```
Client:
Context: fedora_test
Debug Mode: false
Plugins:
buildx: Docker Buildx (Docker Inc., v0.7.1)
compose: Docker Compose (Docker Inc., v2.2.3)
scan: Docker Scan (Docker Inc., v0.16.0)

Server:
Containers: 0
Running: 0
Paused: 0
Stopped: 0
Images: 0
Server Version: 20.10.12
Storage Driver: btrfs
Build Version: Btrfs v5.15.1
Library Version: 102
Logging Driver: json-file
Cgroup Driver: systemd
Cgroup Version: 2
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: 7b11cfaabd73bb80907dd23182b9347b4245eb5d
runc version: v1.0.2-0-g52b36a2
init version: de40ad0
Security Options:
seccomp
Profile: default
rootless
cgroupns
Kernel Version: 5.14.10-300.fc35.x86_64
Operating System: Fedora Linux 35 (Cloud Edition)
OSType: linux
Architecture: x86_64
CPUs: 4
Total Memory: 3.816GiB
Name: lima-fedora
ID: B4LY:WZAB:NEYN:KC3Z:ONUC:QGY6:JXBW:4XSH:USU7:64WH:I5EG:AMF7
Docker Root Dir: /home/olegtarassov.linux/.local/share/docker
Debug Mode: false
Registry: https://index.docker.io/v1/
Labels:
Experimental: false
Insecure Registries:
127.0.0.0/8
Live Restore Enabled: false
```

lima yaml file (inspired from colima)
```
images:
- location: "https://download.fedoraproject.org/pub/fedora/linux/releases/35/Cloud/x86_64/images/Fedora-Cloud-Base-35-1.2.x86_64.qcow2"
arch: "x86_64"
digest: "sha256:fe84502779b3477284a8d4c86731f642ca10dd3984d2b5eccdf82630a9ca2de6"
cpus: 4
memory: 4GiB
disk: 32GiB

networks:
- lima: bridged
interface: en0

mounts:
- location: "~"
writable: true
- location: "/tmp/lima"
writable: true

containerd:
system: false
user: false

provision:
- mode: system
script: |
#!/bin/sh
sed -i 's/host.lima.internal.*/host.lima.internal host.docker.internal/' /etc/hosts
setenforce 0
sed -i --follow-symlinks 's/SELINUX=enforcing/SELINUX=disabled/g' /etc/sysconfig/selinux

- mode: system
script: |
#!/bin/bash
set -eux -o pipefail
command -v docker >/dev/null 2>&1 && exit 0
dnf install -y fuse-overlayfs dnf-plugins-core bash-completion
dnf config-manager --add-repo https://download.docker.com/linux/fedora/docker-ce.repo
dnf install -y docker-ce docker-ce-cli containerd.io
systemctl disable --now docker.service docker.socket

- mode: user
script: |
#!/bin/bash
set -eux -o pipefail
dockerd-rootless-setuptool.sh install
docker context use rootless

probes:
- script: |
#!/bin/bash
set -eux -o pipefail
if ! timeout 30s bash -c "until command -v docker >/dev/null 2>&1; do sleep 3; done"; then
echo >&2 "docker is not installed yet"
exit 1
fi
if ! timeout 30s bash -c "until pgrep rootlesskit; do sleep 3; done"; then
echo >&2 "rootlesskit (used by rootless docker) is not running"
exit 1
fi
hint: See "/var/log/cloud-init-output.log". in the guest
# See "~/.lima/fedora/serial.log in the host

portForwards:
- guestSocket: "/run/user/{{.UID}}/docker.sock"
hostSocket: "{{.Dir}}/sock/docker.sock"

message: |
To run `docker` on the host (assumes docker-cli is installed), run the following commands:
------
docker context create lima --docker "host=unix://{{.Dir}}/sock/docker.sock"
docker context use lima
docker run hello-world
sudo ln -sf ~/.lima/fedora/sock/docker.sock /var/run/docker.sock
------
```

Note that pulling images of smaller size work from either dockerhub or quay work as expected.

Thank you

Oleg