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Docker resources [You don't have any WSL 2 distro. Please convert a WSL 1 distro to WSL 2]

Despite the fact I have installed two distros in my windows 10

PS C:\Users\sdancer> wsl -l -v                                                                                            NAME            STATE           VERSION
* Ubuntu-20.04    Stopped         2
  Ubuntu-18.04    Stopped         2
PS C:\Users\sdancer> ]

Under Resources & WSL INTEGRATION I get the message " You don’t have any WSL 2 distro. Please convert a WSL 1 distro to WSL 2, or install a new distro and it will appear here. More info"

Why?

Uninstall your distros, ensure Hyper-V is enabled, and WLS2 is enabled, and reinstall your distros.
Worked for me.