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For the latest Docker Toolbox for Windows 17.07, there are some change on bash terminal.

Docker Quickstart terminal

when start quickstart terminal, it is still CMD shell, checked start command it just start bash.exe,

"C:\Program Files\Git\bin\bash.exe" --login -i "C:\Program Files\Docker Toolbox\start.sh"

In fact Docker Toolbox for Windows shipping with Git for Windows, the git-bash.exe has re-sizable mintty shell terminal rather than CMD, why not just use git-bash.exe in above Quickstart terminal?

keep in mind git-bash.exe already has "–login -i" option by default,

"C:\Program Files\Git\git-bash.exe" "C:\Program Files\Docker Toolbox\start.sh"

mintty issue

[09:55:26]/h$ docker run -it busybox date
the input device is not a TTY. If you are using mintty, try prefixing the command with 'winpty'

There are two options:
1) add winpty before any interactive command in mintty, docker run -i will ask interactive mode

[09:55:48]/h$ winpty docker run -it busybox date
Unable to find image 'busybox:latest' locally
latest: Pulling from library/busybox
add3ddb21ede: Pull complete
Digest: sha256:b82b5740006c1ab823596d2c07f081084ecdb32fd258072707b99f52a3cb8692
Status: Downloaded newer image for busybox:latest
Mon Sep 11 13:59:17 UTC 2017

[09:59:19]/h$ winpty docker run -it busybox date
Mon Sep 11 13:59:26 UTC 2017

2) or don’t enable pseudo-TTY in mintty

[10:12:47]/h$ docker run -i busybox date
Mon Sep 11 14:12:55 UTC 2017