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Docker-desktop-data is default distribution after installing Docker Desktop 3.0.0 (50684)

Issue type: wsl bash is not opening after Docker Destop upgrade
OS Version/Build: Windows 10 Version 2004 (Build 19041.685)
App version: Docker Desktop 3.0.0 (50684)

After Docker Desktop upgrade to 3.0.0 (50684) wsl bash stopped working. The bash window is opened briefly and closed after. The wsl --list --all command executed in powershell console showed docker-desktop-data as the default distribution. Is this the correct distribution to be used by wsl, instead of docker-desktop?
After using wsl -s docker-desktop command in powershell the bash is working again.