Is there slight possibility you deleted default machine? But, first check if all files are there (OSX, similar on other systems)
brew install docker docker-compose docker-machine xhyve docker-machine-driver-xhyve
brew link docker docker-compose docker-machine xhyve docker-machine-driver-xhyve
sudo chown root:wheel /usr/local/opt/docker-machine-driver-xhyve/bin/docker-machine-driver-xhyve
sudo chmod u+s /usr/local/opt/docker-machine-driver-xhyve/bin/docker-machine-driver-xhyve
Also, install Docker App, as it much easier to maintain containers:
brew cask reinstall docker
ans start Docker app from finder (wait until service is fully started)
Then, check instalation with:
docker-machine ls
if no machines are present in list, create one and start it:
docker-machine create default
docker-machine start default
After this, build, compose and all other commands should work properly.