Connectivity with VPN and proxy broken - no such host #6315

• I have tried with the latest version of Docker Desktop
• I have tried disabling enabled experimental features
• I have uploaded Diagnostics
• Diagnostics ID: 872096FA-4E99-4B73-8D7E-A05ED61B8E77/20220512100418

Expected behavior

Docker respects the proxy settings so it can resolve domains and can download container images

Actual behavior

Docker responds

docker: Error response from daemon: Get "https://registry-1.docker.io/v2/": Failed to lookup host: registry-1.docker.io.

Information

• macOS Version:
• Intel chip or Apple chip: Apple chip
• Docker Desktop Version:

Client:
Cloud integration: v1.0.24
Version: 20.10.14
API version: 1.41
Go version: go1.16.15
Git commit: a224086
Built: Thu Mar 24 01:49:20 2022
OS/Arch: darwin/arm64
Context: default
Experimental: true

Server: Docker Desktop 4.8.1 (78998)
Engine:
Version: 20.10.14
API version: 1.41 (minimum version 1.12)
Go version: go1.16.15
Git commit: 87a90dc
Built: Thu Mar 24 01:45:44 2022
OS/Arch: linux/arm64
Experimental: false
containerd:
Version: 1.5.11
GitCommit: 3df54a852345ae127d1fa3092b95168e4a88e2f8
runc:
Version: 1.0.3
GitCommit: v1.0.3-0-gf46b6ba
docker-init:
Version: 0.19.0
GitCommit: de40ad0

Output of /Applications/Docker.app/Contents/MacOS/com.docker.diagnose check

[PASS] DD0027: is there available disk space on the host?
[PASS] DD0028: is there available VM disk space?
[PASS] DD0031: does the Docker API work?
[PASS] DD0004: is the Docker engine running?
[PASS] DD0011: are the LinuxKit services running?
[PASS] DD0016: is the LinuxKit VM running?
[PASS] DD0001: is the application running?
[PASS] DD0018: does the host support virtualization?
[PASS] DD0017: can a VM be started?
[PASS] DD0015: are the binary symlinks installed?
[PASS] DD0003: is the Docker CLI working?
[PASS] DD0013: is the $PATH ok?
[PASS] DD0007: is the backend responding?
[PASS] DD0014: are the backend processes running?
[PASS] DD0008: is the native API responding?
[PASS] DD0009: is the vpnkit API responding?
[PASS] DD0010: is the Docker API proxy responding?
[FAIL] DD0012: is the VM networking working? network checks failed: failed to lookup hub.docker.com: lookup hub.docker.com on 192.168.65.5:53: no such host
[2022-05-12T08:49:28.982829000Z][com.docker.diagnose][I] ipc.NewClient: 4402a718-diagnose-network -> Library/Containers/com.docker.docker/Data/diagnosticd.sock diagnosticsd
[common/pkg/diagkit/gather/diagnose.runIsVMNetworkingOK()
[ common/pkg/diagkit/gather/diagnose/network.go:34 +0xd4
[common/pkg/diagkit/gather/diagnose.(*test).GetResult(0x101c500e0)
[ common/pkg/diagkit/gather/diagnose/test.go:46 +0x44
[common/pkg/diagkit/gather/diagnose.Run.func1(0x101c500e0)
[ common/pkg/diagkit/gather/diagnose/run.go:17 +0x44
[common/pkg/diagkit/gather/diagnose.walkOnce.func1(0x2?, 0x101c500e0)
[ common/pkg/diagkit/gather/diagnose/run.go:140 +0x84
[common/pkg/diagkit/gather/diagnose.walkDepthFirst(0x1, 0x101c500e0, 0x1400069d728)
[ common/pkg/diagkit/gather/diagnose/run.go:146 +0x3c
[common/pkg/diagkit/gather/diagnose.walkDepthFirst(0x0, 0x20?, 0x1400069d728)
[ common/pkg/diagkit/gather/diagnose/run.go:149 +0x78
[common/pkg/diagkit/gather/diagnose.walkOnce(0x1017340a0?, 0x140002df890)
[ common/pkg/diagkit/gather/diagnose/run.go:135 +0x8c
[common/pkg/diagkit/gather/diagnose.Run(0x101c50260, 0x101003fa0?, {0x140002dfb08, 0x1, 0x1})
[ common/pkg/diagkit/gather/diagnose/run.go:16 +0x178
[main.checkCmd({0x14000032050?, 0x6?, 0x4?}, {0x0, 0x0})
[ common/cmd/com.docker.diagnose/main.go:132 +0xe0
[main.main()
[ common/cmd/com.docker.diagnose/main.go:98 +0x308
[2022-05-12T08:49:28.982906000Z][com.docker.diagnose][I] (23de1b0c) 4402a718-diagnose-network C->S diagnosticsd POST /check-network-connectivity: {"ips":["192.168.2.137","10.141.159.101"]}
[2022-05-12T08:49:29.069229000Z][com.docker.diagnose][W] (23de1b0c) 4402a718-diagnose-network C<-S e171ba9b-diagnosticsd POST /check-network-connectivity (86.332375ms): failed to lookup hub.docker.com: lookup hub.docker.com on 192.168.65.5:53: no such host

[PASS] DD0032: do Docker networks overlap with host IPs?
[SKIP] DD0030: is the image access management authorized?
[PASS] DD0019: is the com.docker.vmnetd process responding?
[PASS] DD0033: does the host have Internet access?

Steps to reproduce the behavior

1. Sitting together with colleagues having a Mac & Docker Desktop. Each facing the same proxy.
2. docker run hello-world runs for them, but not for me
3. Proxy settings are all the same for colleagues & me. Only difference is the used Docker Desktop version (colleagues have older Docker Desktop for Mac versions).
4. Side note: When connected to the "real internet" docker works like a charm, but: the proxy settings are not unset (they are still enriched in the environment + the Docker settings). For me it seems, as if the proxy settings are not injected to Docker.