Hi Matt
I just tried this myself on Windows, and it worked OK. This is the command I ran:
.\balenaos-in-container.ps1 -image balenalib/intel-nuc-alpine -id test -c config.json -detach
It seems that the image you are trying to run needs aufs installed on your system, as per step 3 in the instructions here:
Can you let me know the command you ran, with all the arguments, on your system?
Phil