hcsshim::ImportLayer failed in Win32: The system cannot find the path specified. (0x3) on Docker Desktop for Windows Community edition 2.3.0.3(45519)

I am/we are encountering "hcsshim::ImportLayer failed in Win32: The system cannot find the path specified. (0x3)" on Windows 10 Pro 1909 with Docker Community 19.03.8:

re-exec error: exit status 1: output: time="2020-06-05T14:05:25+09:00" level=error msg="hcsshim::ImportLayer - failed failed in Win32: The system cannot find the path specified. (0x3)" error="hcsshim::ImportLayer - failed failed in Win32: The system cannot find the path specified. (0x3)" importFolderPath="C:\\ProgramData\\Docker\\tmp\\hcs949648159" path="\\\\?\\C:\\ProgramData\\Docker\\windowsfilter\\3a7d2d6226be0f3cca2d17d5b29069918b0f14dd889484ecd8bb208329d382b8"
hcsshim::ImportLayer - failed failed in Win32: The system cannot find the path specified. (0x3)

> docker version
Client: Docker Engine - Community
 Version:           19.03.8
 API version:       1.40
 Go version:        go1.12.17
 Git commit:        afacb8b
 Built:             Wed Mar 11 01:23:10 2020
 OS/Arch:           windows/amd64
 Experimental:      false

Server: Docker Engine - Community
 Engine:
  Version:          19.03.8
  API version:      1.40 (minimum version 1.24)
  Go version:       go1.12.17
  Git commit:       afacb8b
  Built:            Wed Mar 11 01:37:20 2020
  OS/Arch:          windows/amd64
  Experimental:     false

It happens during msys2 installation of the minimal reproducible Dockerfile:

# Reproducible (0x3) error docker file

FROM mcr.microsoft.com/windows/servercore:ltsc2019

# Do not split this into multiple RUN!
# Docker creates a layer for every RUN-Statement
RUN powershell -Command "Set-ExecutionPolicy Bypass -Scope Process -Force; iex ((New-Object System.Net.WebClient).DownloadString('https://chocolatey.org/install.ps1'))"

# Fluentd depends on cool.io whose fat gem is only available for Ruby < 2.5, so need to specify --platform ruby when install Ruby > 2.5 and install msys2 to get dev tools
RUN choco install -y ruby --version 2.6.5.1 --params "'/InstallDir:C:\ruby26'" \

This issue is also happen with using mcr.microsoft.com/windows/servercore:1909 and mcr.microsoft.com/windows/servercore:1903 base images.

We also hit this issue with this Dockerfile.

And I didn't solve this issue with using https://github.com/jhowardmsft/docker-ci-zap and delete all docker related data.

How should we avoid this issue?

Start by running the minimal reproducible Dockerfile from the issue on the stated Windows and Docker versions, then inspect the hcsshim::ImportLayer logs and paths under C:\ProgramData\Docker. Done means establishing the cause of the missing path and verifying a documented fix or workaround against the provided reproduction.