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Is Rancher Desktop running und configured to use containerd? I guess you are using Windows, did you run "nerdctl compose ..." or "docker compose ..."?

Yes, rancher desktop is running and configured to use containerd. I ran nerdctl compose.... But nerdctl run... also fails. I am using windows.

can you provide the output from "`rdctl list-settings`"?

Output of

rdctl list-settings

{
  "version": 4,
  "kubernetes": {
    "version": "",
    "memoryInGB": 2,
    "numberCPUs": 2,
    "port": 6443,
    "containerEngine": "containerd",
    "checkForExistingKimBuilder": false,
    "enabled": false,
    "WSLIntegrations": {},
    "options": {
      "traefik": true,
      "flannel": true
    },
    "suppressSudo": false,
    "hostResolver": true
  },
  "portForwarding": {
    "includeKubernetesServices": false
  },
  "images": {
    "showAll": true,
    "namespace": "buildkit"
  },
  "telemetry": true,
  "updater": true,
  "debug": false,
  "pathManagementStrategy": "notset"
}