AWS SAM local commands check for the existance of DOCKER_HOST. If the variable is not present, it will fail with the following error message
Error: Running AWS SAM projects locally requires Docker. Have you got it installed and running?
Point DOCKER_HOST to unix socket of the Docker Daemon. Colina creates it in the $HOME/.colima directory. Check the folder if the unix socket is present (docker.sock)
ls -la $HOME/.colima
Now set the environment variable (better add it to your shell config in .zshenv)
export DOCKER_HOST="unix://$HOME/.colima/docker.sock"
Source it in your shell
source ~/.zshenv
Now rebuild your sam project
sam build -u
This makes the CDK happy too! amazing! 🙌