This bug affects me too. It has been fixed upstream here:

https://github.com/moby/moby/pull/30519

A workaround is to edit /var/lib/docker/nuke-graph-directory.sh, and do
the following replacement:

-#!/bin/sh
+#!/bin/bash

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https://bugs.launchpad.net/bugs/1767617

Title:
  package docker.io (not installed) failed to install/upgrade: installed
  docker.io package post-removal script subprocess returned error exit
  status 127

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