Hi @pawan, I was messing around, so I deleted dgraph docker container and deleted the related folders (since i found that the w directory and the MANIFEST file were still present there) and tried to install it through the below command:
mkdir -p ~/dgraph
docker run -it -p 8080:8080 -p 9080:9080 -v ~/dgraph:/dgraph --name dgraph dgraph/dgraph dgraph --bindall=true --memory_mb 2048
Now I am getting the same error as pointed out in Issue#1325 and i was able to make it run without mounting the volume as pointed out by you in the issue.
But the first time it did work and this is surprising.