I had a similar problem:
docker: Error response from daemon: OCI runtime create failed: container_linux.go:346: starting container process caused "exec: \"sh\": executable file not found in $PATH": unknown.
In my case, I know the image works in other places, then was a corrupted local image.
I solved the issue removing the image (docker rmi ) and pulling it again(docker pull ).
I did a docker system prune too, but I think it's not mandatory.