Seems like it fails if you have an AMD GPU instead of an Nvidia one (at least that's my guess, based on the error contents):
ERROR: for stable-diffusion Cannot start service stable-diffusion: failed to create shim: OCI runtime create failed: container_linux.go:380: starting container process caused: process_linux.go:545: container init caused: Running hook #0:: error running hook: exit status 1, stdout: , stderr: nvidia-container-cli: initialization error: load library failed: libnvidia-ml.so.1: cannot open shared object file: no such file or directory: unknown