Not finding docker image when running locally

Summary

Running the gitlab-runner locally with docker fails to recognise the image defined in default.

Steps to reproduce

Run gitlab-runner exec docker step1 in your terminal with the following gitlab CI file.

.gitlab-ci.yml

default:
  image: alpine:latest
  before_script:
    - echo "Hello World"

stages:
  - stage1

step1:
  stage: stage1
  script:
    - echo "Hello Universe"

Actual behavior

Running with gitlab-runner 13.11.0 (7f7a4bb0)
Preparing the "docker" executor
ERROR: Failed to remove network for build
ERROR: Preparation failed: no Docker image specified to run the build in
Will be retried in 3s ...
ERROR: Failed to remove network for build
ERROR: Preparation failed: no Docker image specified to run the build in
Will be retried in 3s ...
ERROR: Failed to remove network for build
ERROR: Preparation failed: no Docker image specified to run the build in
Will be retried in 3s ...
ERROR: Job failed (system failure): no Docker image specified to run the build in
FATAL: no Docker image specified to run the build in

Expected behavior

I expect it to find and pull the image, and then output both "Hello World" and "Hello Universe"

Relevant logs and/or screenshots

Here is the screenshot of the file in CI lint passing:

Environment description

Docker info

Client:
 Context:    default
 Debug Mode: false
 Plugins:
  app: Docker App (Docker Inc., v0.9.1-beta3)
  buildx: Build with BuildKit (Docker Inc., v0.5.1-docker)
  scan: Docker Scan (Docker Inc., v0.6.0)

Server:
 Containers: 40
  Running: 3
  Paused: 0
  Stopped: 37
 Images: 31
 Server Version: 20.10.5
 Storage Driver: overlay2
  Backing Filesystem: extfs
  Supports d_type: true
  Native Overlay Diff: true
 Logging Driver: json-file
 Cgroup Driver: cgroupfs
 Cgroup Version: 1
 Plugins:
  Volume: local
  Network: bridge host ipvlan macvlan null overlay
  Log: awslogs fluentd gcplogs gelf journald json-file local logentries splunk syslog
 Swarm: inactive
 Runtimes: io.containerd.runtime.v1.linux runc io.containerd.runc.v2
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: 05f951a3781f4f2c1911b05e61c160e9c30eaa8e
 runc version: 12644e614e25b05da6fd08a38ffa0cfe1903fdec
 init version: de40ad0
 Security Options:
  seccomp
   Profile: default
 Kernel Version: 5.10.25-linuxkit
 Operating System: Docker Desktop
 OSType: linux
 Architecture: x86_64
 CPUs: 6
 Total Memory: 7.775GiB
 Name: docker-desktop
 ID: CTLL:CQHF:4VDD:3LSN:PSMX:7BOK:L4H3:4LV6:SG5H:JYUF:A3PW:ERNF
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 HTTP Proxy: http.docker.internal:3128
 HTTPS Proxy: http.docker.internal:3128
 Registry: https://index.docker.io/v1/
 Labels:
 Experimental: false
 Insecure Registries:
  127.0.0.0/8
 Live Restore Enabled: false

Used GitLab Runner version

Version:      13.11.0
Git revision: 7f7a4bb0
Git branch:   13-11-stable
GO version:   go1.16.3
Built:        2021-04-28T00:55:29+01:00
OS/Arch:      darwin/amd64