Thanks to Dan the issue was finally resolved. In case future xibo users are reading this post there are a number of fronts to be aware of:
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Ensure folder editing permissions to all users ( windows users) who run xibo through docker, otherwise it is unable to create folders in the required folder
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add the below line to your docker-compose.yml file, at the bottom of the cms-db service block:
command: --innodb_use_native_aio=0
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Use Notepad ++ for easier navigation of config files
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Use cd c:/users/xibo to ensure docker is looking in the correct folder
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Now that changes have been made to the config files and permissions, I would recommend resetting Docker Toolbox by opening VirtualBox and deleting the VM named Default. Restart Docker Toolbox after you have done this to initiate the reset.
After Docker has reset, attempt upping the containers again.