Problem with "Transparent Huge Pages" on Windows 10 when using Docker
Which docker engine are you using? Within Docker Desktop go to settings. Then under the general section it will show Use the WSL2 based engine. If this is checked then more than likely the issue is with using WSL2.
Additionally, look at your my.cnf file. If the cnf file has the thp-setting in it, mysql will try to write the setting that exists into those locations when it starts. If you comment out or remove that line in my.cnf, it should work fine.