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I suspect you have some local configuration that breaks the way Rancher Desktop configures certain commands to be executable by

sudo

without a password. This is needed to give Rancher Desktop and externally routable IP address, and to create a symlink to

/var/run/docker.sock

if you are using the moby engine. You can use

docker context use rancher-desktop

instead of using the socket in the system default location. So if you don't need an external address for your cluster, you can simply disable "admin access" in the settings, and the error should be avoided.

@fast-garage-66093 I don't have any local configuration and I selected containerd (default) engine. I tried disabling "admin access" but that didn't help to resolve the error

This code should not be executed at all when you have disabled admin access (and maybe restarted Rancher Desktop). Can you run

rdctl list-settings

while Rancher Desktop is up (if in non-working mode) and verify:

$ ~/.rd/bin/rdctl list-settings | grep -i sudo
    "suppressSudo": true,