Docker - ERROR: failed to register layer: symlink

To solve this issue, you just Stop and Start docker service from terminal.

# service docker stop
# service docker start

Followed this answer just restarting docker fixed the problem.

https://stackoverflow.com/a/35325477/4031815

For me, this issue came up when I tried to clear the lib/docker/overlay folder by deleting all its contents (not a good thing to do). After that, I was not able to build any of my images back.

Solved it by running this

docker system prune --volumes -a

Warning: This removes all the volumes and its contents which may result in data loss. Which was fine for me since I already deleted everything.