It looks like something happened to your WSL which has to be fixed first. grep should be included in the ubuntu distro and if it cannot be found, your WSL is broken.I don’t use it often enough to know what it could be caused by, but if it happened during a Windows update, maybe you should try to get help in a Microsoft forum.
I would probably try to reinstall the whole WSL, not just the distro. Maybe turn off the Windows features and turn back again, but I guess that wouldn’t matter.
WSL is not the distribution. Docker has its own distributions. So the fact that you “fixed” a default distribution will not affect Docker Desktop.
Thanks for the reply. I know the default wsl instance (Ubuntu) is not used by Docker-Desktop. However, I was getting the same error when I was launching it, so I thought that finding a workaround for it would help me with Docker desktop.
However, docker-desktop-data wsl distribution is not even created.