Docker start fails with Cannot start service ... file exists

[kirtangajjar]

• [x] This is a bug report
• [ ] This is a feature request
• [x] I searched existing issues before opening this one

Expected behavior

Container would start while running docker-compose up -d

Actual behavior

Instead of starting containers, it throws the following error -

Starting container_service_1 ... error

ERROR: for container_service_1  Cannot start service service: mkdir /run/containerd/io.containerd.runtime.v1.linux/moby/9394af76c52a45e361431759646483ea99d8e50f1f6f5809e1441aec09b3ad20: file exists: unknown

ERROR: for php  Cannot start service php: mkdir /run/containerd/io.containerd.runtime.v1.linux/moby/9394af76c52a45e361431759646483ea99d8e50f1f6f5809e1441aec09b3ad20: file exists: unknown
Encountered errors while bringing up the project.

Output of docker version:

docker version
Client:
 Version:           18.09.3
 API version:       1.39
 Go version:        go1.10.8
 Git commit:        774a1f4
 Built:             Thu Feb 28 06:53:11 2019
 OS/Arch:           linux/amd64
 Experimental:      false

Server: Docker Engine - Community
 Engine:
  Version:          18.09.3
  API version:      1.39 (minimum version 1.12)
  Go version:       go1.10.8
  Git commit:       774a1f4
  Built:            Thu Feb 28 05:59:55 2019
  OS/Arch:          linux/amd64
  Experimental:     false

Output of docker info:

docker info
Containers: 73
 Running: 16
 Paused: 0
 Stopped: 57
Images: 18
Server Version: 18.09.3
Storage Driver: overlay2
 Backing Filesystem: extfs
 Supports d_type: true
 Native Overlay Diff: true
Logging Driver: json-file
Cgroup Driver: cgroupfs
Plugins:
 Volume: local
 Network: bridge host macvlan null overlay
 Log: awslogs fluentd gcplogs gelf journald json-file local logentries splunk syslog
Swarm: inactive
Runtimes: runc
Default Runtime: runc
Init Binary: docker-init
containerd version: e6b3f5632f50dbc4e9cb6288d911bf4f5e95b18e
runc version: 6635b4f0c6af3810594d2770f662f34ddc15b40d
init version: fec3683
Security Options:
 apparmor
 seccomp
  Profile: default
Kernel Version: 4.15.0-45-generic
Operating System: Ubuntu 18.04.2 LTS
OSType: linux
Architecture: x86_64
CPUs: 2
Total Memory: 3.852GiB
Name: dev3-rt-gw
ID: N7IP:23AM:RBSC:VV2M:KT6V:JOEJ:IBHU:D633:F24S:OUAC:CXBD:F5N4
Docker Root Dir: /var/lib/docker
Debug Mode (client): false
Debug Mode (server): false
Registry: https://index.docker.io/v1/
Labels:
Experimental: false
Insecure Registries:
 127.0.0.0/8
Live Restore Enabled: false
Product License: Community Engine

WARNING: No swap limit support

Additional environment details (AWS, VirtualBox, physical, etc.) Hosted on AWS.