Error response from daemon: Get "https://registry-1.docker.io/v2/": proxyconnect tcp: dial tcp 192.168.65.1:3128: connect: connection refused #12725

I have tried with the latest version of Docker Desktop

I have tried disabling enabled experimental features

I have uploaded Diagnostics

Diagnostics ID:

Actual behavior

Docker aborts pulling the image with the following exception:
D:\docker\dockerfiles\busybox\shanghai-utf>docker pull busybox Using default tag: latest Error response from daemon: Get "https://registry-1.docker.io/v2/": proxyconnect tcp: dial tcp 192.168.65.1:3128: connect: connection refused

Expected behavior

Information

Windows Version: Windows 10 Pro, 21h2, 19044.1706

Docker Desktop Version: 4.8.1 (78998)

WSL2 or Hyper-V backend? WSL2

Are you running inside a virtualized Windows e.g. on a cloud server or a VM: No

Output of & "C:\Program Files\Docker\Docker\resources\com.docker.diagnose.exe" 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?
[SKIP] DD0018: does the host support virtualization?
[PASS] DD0002: does the bootloader have virtualization enabled?
[PASS] DD0017: can a VM be started?
[PASS] DD0024: is WSL installed?
[PASS] DD0021: is the WSL 2 Windows Feature enabled?
[PASS] DD0022: is the Virtual Machine Platform Windows Feature enabled?
[PASS] DD0025: are WSL distros installed?
[PASS] DD0026: is the WSL LxssManager service running?
[PASS] DD0029: is the WSL 2 Linux filesystem corrupt?
[PASS] DD0015: are the binary symlinks installed?
[PASS] DD0003: is the Docker CLI working?
[PASS] DD0013: is the $PATH ok?
[PASS] DD0005: is the user in the docker-users group?
[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?
[PASS] DD0006: is the Docker Desktop Service responding?
[FAIL] DD0012: is the VM networking working? network checks failed: failed to ping host: exit status 1
[2022-05-16T03:00:42.385871900Z][com.docker.diagnose.exe][I] ipc.NewClient: a9083c1b-diagnose-network -> \.\pipe\dockerDiagnosticd diagnosticsd
[common/pkg/diagkit/gather/diagnose.runIsVMNetworkingOK()
[ common/pkg/diagkit/gather/diagnose/network.go:34 +0xdd
[common/pkg/diagkit/gather/diagnose.(*test).GetResult(0x152f8a0)
[ common/pkg/diagkit/gather/diagnose/test.go:46 +0x43
[common/pkg/diagkit/gather/diagnose.Run.func1(0x152f8a0)
[ common/pkg/diagkit/gather/diagnose/run.go:17 +0x5a
[common/pkg/diagkit/gather/diagnose.walkOnce.func1(0x2?, 0x152f8a0)
[ common/pkg/diagkit/gather/diagnose/run.go:140 +0x77
[common/pkg/diagkit/gather/diagnose.walkDepthFirst(0x1, 0x152f8a0, 0xc0004dd730)[ common/pkg/diagkit/gather/diagnose/run.go:146 +0x36
[common/pkg/diagkit/gather/diagnose.walkDepthFirst(0x0, 0xcb00000012?, 0xc0004dd730)
[ common/pkg/diagkit/gather/diagnose/run.go:149 +0x73
[common/pkg/diagkit/gather/diagnose.walkOnce(0xefa960?, 0xc00025f890)
[ common/pkg/diagkit/gather/diagnose/run.go:135 +0xcc
[common/pkg/diagkit/gather/diagnose.Run(0x152fea0, 0xef4300?, {0xc00025fb20, 0x1, 0x1})
[ common/pkg/diagkit/gather/diagnose/run.go:16 +0x1cb
[main.checkCmd({0xc0000963b0?, 0xc0000963b0?, 0x4?}, {0x0, 0x0})
[ common/cmd/com.docker.diagnose/main.go:132 +0x105
[main.main()
[ common/cmd/com.docker.diagnose/main.go:98 +0x27f
[2022-05-16T03:00:42.385871900Z][com.docker.diagnose.exe][I] (eae45802) a9083c1b-diagnose-network C->S diagnosticsd POST /check-network-connectivity: {"ips":["10.210.48.237","192.168.112.1","172.18.16.1"]}
[2022-05-16T03:00:42.922728300Z][com.docker.diagnose.exe][W] (eae45802) a9083c1b-diagnose-network C<-S dbc73aa1-diagnosticsd POST /check-network-connectivity (536.8564ms): failed to ping host: exit status 1

[FAIL] DD0032: do Docker networks overlap with host IPs? network concourse-ci_default has subnet 172.18.0.0/16 which overlaps with host IP 172.18.16.1
[SKIP] DD0030: is the image access management authorized?
[PASS] DD0033: does the host have Internet access?

Please investigate the following 2 issues:

1 : The test: is the VM networking working?
Failed with: network checks failed: failed to ping host: exit status 1
VM seems to have a network connectivity issue. Please check your host firewall and anti-virus settings in case they are blocking the VM.
2 : The test: do Docker networks overlap with host IPs?
Failed with: network concourse-ci_default has subnet 172.18.0.0/16 which overlaps with host IP 172.18.16.1

Steps to reproduce the behavior

Switch the "Manual proxy configuration" on and off, it behaves the same.
In other words, the behavior exactly the same as Error response from daemon: Get https://registry-1.docker.io/v2/: proxyconnect tcp: dial tcp 127.0.0.1:8080: connect: connection refused #9400 , except for the proxy ip 192.168.65.1 and port 3128, not same as its 127.0.0.1:8080.

Follow up

The command docker info outputs this:

HTTP Proxy: http.docker.internal:3128
HTTPS Proxy: http.docker.internal:3128
No Proxy: hubproxy.docker.internal

Then I looked up my ~/.docker/ config.json. Below is its all whole content:
{ "auths": {}, "credsStore": "desktop", "currentContext": "default", "stackOrchestrator": "swarm" }
And no "proxy" thing in my daemon.json.
So my question is, Who, and how, tucked the piece of proxy config into my docker?