Changing disk image location not working

I found the size of wsl folder is massive. It’s 23 GB. I’m not sure if it’s huge or not, as I’m a complete beginner in this field. So, I tried to change the folder location through the Settings.
Since I browsed the folder I want to locate and clicked Apply & Restart button, nothing happened. The circle indicator looks working, but the folder hadn’t been moved.
I’ve been waiting more than 30 mins, but nothing was changed.

This issue got fixed with Docker Desktop 4.20.0: