docker compose fails with strange hcsshim::CreateComputeSystem error

It seems that after latest update of Docker to 20.10.13 or maybe some Windows 10 update there is some problem with volumes. The error is a bit cryptic (something like ERROR: for {containerName} Cannot start service {containerName}: hcsshim::CreateComputeSystem {someVeryLongHashHere}: Access is denied.) but it seems…