The Podman Desktop for Windows GUI is incompatible with a docker-cli that has been installed with a DOCKER_HOST environment variable defined globally. If you want to run both, the DOCKER_HOST variable has to be set up locally (in the command prompt) before running docker.exe rather than as a System or User Environment variable that is always active. Interestingly, the podman.exe command does not have this problem and ignores the DOCKER_HOST environment variable.
Download Podman Desktop for Windows from https://podman-desktop.io/downloads/windows.
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