How to run "docker-machine create" in OS X?

I had the same issue. At the same spot ;-) For me the xhyve driver, available from https://github.com/zchee/docker-machine-driver-xhyve, worked. In short:

brew install docker-machine-driver-xhyve

You get a notice some links need to be created manually, so copy those and execute

sudo chown root:wheel /usr/local/opt/docker-machine-driver-xhyve/bin/docker-machine-driver-xhyve
sudo chown root:wheel /usr/local/opt/docker-machine-driver-xhyve/bin/docker-machine-driver-xhyve

Create:

docker-machine create --driver xhyve manager

Without VirtualBox. Im using OS X 10.11.6, too.

I had the same issue today and resolved it by installing VirtualBox as an additional step after installing Docker for Mac (I did so with brew install --cask virtualbox)

I don't recall having to do the extra install previously, but maybe I already had VirtualBox already installed because of another tool (like Vagrant). Anyway, this is explained in the Docker Machine documentation:

If you are using Docker for Mac

Docker for Mac uses HyperKit, a lightweight macOS virtualization solution built on top of the Hypervisor.framework in macOS 10.10 Yosemite and higher.

Currently, there is no docker-machine create driver for HyperKit, so you will use virtualbox driver to create local machines. (See the Docker Machine driver for Oracle VirtualBox.) Note that you can run both HyperKit and Oracle VirtualBox on the same system. To learn more, see Docker for Mac vs. Docker Toolbox.

• Make sure you have the latest VirtualBox correctly installed on your system (either as part of an earlier Toolbox install, or manual install).