There was a fix in 4.42.1 which might be related to your issue
https://docs.docker.com/desktop/release-notes/#4421
- Disabled the Resource Saver mode in WSL 2 to prevent
docker
CLI commands hanging in WSL 2 distros. docker/for-win#14656
Although you wrote WSL distros could not start, but Docker Desktop has its own distribution too so it could be related.