Since I just updated Docker to 1.1.0 I get:
Error response from daemon: client and server don\'t have same version (client : 1.13, server: 1.12)
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In case you use docker-machine to manage a local VirtualBox-based machines the solution is as simple as for boot2docker:
docker-machine upgrade MACHINE_NAME
It asks docker-machine to download the latest boot2docker.iso and place it as a new root filesystem in the upgraded VM.
By the way, the VirtualBox-backed docker machine has its root filesystem readonly. That mean it's not possible for any manual update survive the machine reboot. That was a surprise for me.