I keep rereading the Docker documentation to try to understand the difference between Docker and a full VM. How does it manage to provide a full filesystem, isolated network
There are a lot of nice technical answers here that clearly discuss the differences between VMs and containers as well as the origins of Docker.
For me the fundamental difference between VMs and Docker is how you manage the promotion of your application.
With VMs you promote your application and its dependencies from one VM to the next DEV to UAT to PRD.
With Docker the idea is that you bundle up your application inside its own container along with the libraries it needs and then promote the whole container as a single unit.
So at the most fundamental level with VMs you promote the application and its dependencies as discrete components whereas with Docker you promote everything in one hit.
And yes there are issues with containers including managing them although tools like Kubernetes or Docker Swarm greatly simplify the task.