Docker fails to start on Win11 with WSL2

Windows 11 new installation. Features turned on (Hyper-V, Containers, Virtual Machine Platform, Windows Hypervisor Platform, and Windows Subsystem for Linux.

Virtualization is enabled in BIOS, and everything is reported as on.

Hyper-V - VM Monitor Mode Extensions|Yes
Hyper-V - Second Level Address Translation Extensions|Yes
Hyper-V - Virtualisation Enabled in Firmware|Yes
Hyper-V - Data Execution Protection|Yes

WSL is on version 2

PS C:\Users\feldm> wsl --status
Default Distribution: Ubuntu
Default Version: 2
Windows Subsystem for Linux was last updated on 2022-09-18
WSL automatic updates are on.

Kernel version:

Hypervisor is launch type is set to auto

bootmenupolicy          Standard
hypervisorlaunchtype    Auto

trying to start Docker Windows throws this error:

CPU spec: 12th Gen Intel(R) Core™ i7-1280P

I’ve tried to enable/disable, install/uninstall/reinstall. Nothing works.
Any ideas on what could cause it?

After some investigation, it seems the machine is not reporting hypervisor as enabled, and that’s causing Docker to fail. CoreInfo tool by Sysinternals was instrumental in identifying it. I wish Docker error would be more meaningful.