"remote docker is not available on this installation" error when running local macOS job

When attempting to run a local job with the command circleci local execute --job build-and-test, I get the following error:

Docker image digest: sha256:8d97c92d6823bc82fb36172de4a6eb9a609a85569c4a5599c4b61133c0021bed

====>> Spin Up Environment

Build-agent version ()

Creating a dedicated VM with xcode:11.5.0 image

Error: We had an unexpected error preparing a VM for this build, potentially due to our infrastructure or cloud provider. Please retry the build in a few minutes

Error:

Unexpected environment preparation error: failed to create host: remote docker is not available on this installation

Step failed

Task failed

Error: Unhandled prepare executor error: failed to create host: remote docker is not available on this installation

The output of docker -v is:
Docker version 19.03.8, build afacb8b

I’m running the Docker Desktop app, version 2.3.0.3.

The output of circleci version is:
0.1.8599+d6e83e7 (release)

My machine is macOS 10.15.5 (2018 MacBook Pro).

The relevant part of my config.yml file is:

version: 2
jobs:
  build-and-test:
    macos:
      xcode: "11.5.0"
    environment:
      FL_OUTPUT_DIR: output
      FASTLANE_LANE: test
    steps:
      - checkout
      - add_ssh_keys:
            fingerprints:
                - "33:60:9e:f4:12:0f:bc:d5:c5:06:4b:ca:de:c2:d9:b1"
      - run:
          name: Install RubyGems
          command: bundle install
      - run:
          name: Fetch CocoaPods Specs
          command: |
            curl https://cocoapods-specs.circleci.com/fetch-cocoapods-repo-from-s3.sh | bash -s cf
      - run:
          name: Install CocoaPods
          command: bundle exec pod install --verbose
      - run:
          name: pre-start simulator
          command: xcrun simctl boot "iPhone 8" || true
      - run:
          name: Fastlane
          command: bundle exec fastlane $FASTLANE_LANE
          environment:
            SCAN_DEVICE: iPhone 8
      - store_artifacts:
          path: output
      - store_test_results:
          path: output/scan
workflows:
  version: 2
  build-and-test:
    jobs:
      - build-and-test

This happens 100% of the time over the past 24 hours or so.