Docker Desktop - Unexpected WSL error

deploying WSL2 distributions
ensuring data disk is available: exit code: 4294967295: running WSL command wsl.exe C:\WINDOWS\System32\wsl.exe --mount --bare --vhd D:\Programs_x64\Docker\images\disk\docker_data.vhdx: Failed to attach disk '\\?\D:\Programs_x64\Docker\images\disk\docker_data.vhdx' to WSL2: Access is denied. 
Error code: Wsl/Service/AttachDisk/MountVhd/HCS/E_ACCESSDENIED
: exit status 0xffffffff
checking if isocache exists: CreateFile \\wsl$\docker-desktop-data\isocache\: The network name cannot be found.

I can solve the issue by running wsl --unregister docker-desktop. But then when I shut down Docker Desktop and restart it, the error is there again.

When I run ‘wsl -l’, I see 2 distributions:

Ubuntu (Default)
docker-desktop

System Information
Diagnostics ID: 12C7270B-A00A-4037-9DBB-F795F103CA70/20240905211852
Docker Desktop version: 4.33.1.0
Docker version 27.1.1, build 6312585
WSL version: 2.2.4.0
Kernel version: 5.15.153.1-2
WSLg version: 1.0.61
MSRDC version: 1.2.5326
Direct3D version: 1.611.1-81528511
DXCore version: 10.0.26091.1-240325-1447.ge-release
Windows version: 10.0.19045.4780

I’m running Docker Desktop as administrator.

Any help much appreciated!

hello @serrhendrik , have you been able to figure out how to fix this issue?

Thank you.