Worked for me. For my installation, I set it up as follows:
- Main installation
D:\Docker - WSL:
D:\Docker\WSL - Windows Containers:
D:\Docker\WindowsContainers
Using powershell with Admin privileges, I used the following command:
Start-Process -Wait -FilePath ".\Docker Desktop Installer.exe" -ArgumentList "install -accept-license --installation-dir=D:\Docker --wsl-default-data-root=D:\Docker\WSL --windows-containers-default-data-root=D:\\Docker\\WindowsContainers"
(Note: the double backslashes are required to specify the Windows container location)