Recently we had to upgrade docker engine version in all nodes of our Service Fabric cluster hosted on Azure because of a vulnerability issue with the previous version.
There was no proper documentation available online so had to work with Microsoft Service Fabric team and did the same using the following steps:
- Restart-Deactivate 1 node at a time which you want to upgrade. You can do it from the SF explorer

2. Once the node is disabled, you can rdp into the machine and run the following powershell commands in admin mode
net stop ServiceFabricNodeBootstrapAgent
net stop FabricHostSvc
Install-Package -Name docker -ProviderName DockerMsftProvider -update -force
You should now see a prompt in powershell with the latest version of docker.
Once done, restart the virtual machine.
Go back to SF explorer and activate the node.
Repeat the same process for all other nodes.