Resolved
A fix has been published (reference: https://github.com/gitpod-io/gitpod/issues/19662#issuecomment-2083900225). Please start a new workspace, if you you are still having trouble please rebuild your workspace image.
Identified
You may be experiencing trouble using Docker in Gitpod (feature reference: https://www.gitpod.io/docs/integrations/kubernetes#1-using-docker-in-gitpod).
The issue was reported (https://github.com/gitpod-io/gitpod/issues/19662), we are producing a fix (https://github.com/gitpod-io/workspace-images/pull/1339), and there are a couple workarounds for the meantime (https://github.com/gitpod-io/gitpod/issues/19662#issuecomment-2083610351).
We estimate that the fix will be available in a few hours.