Docker stuck at "Starting the Docker Engine..."

When I load Docker Desktop I get stuck at “Starting the Docker Engine…” and it will eventually fail to start with a message that says, “running engine: waiting for the Docker API: context deadline exceeded”. I have been stuck on this for 2 days now. I am completely out of ideas.

I feel like I have tried everything online and still nothing is working. When i do “wsl --version --verbose” I see version 2.

Things I have tried:
Uninstalling docker and reinstalling as admin
Running docker desktop as admin
Deleting every docker folder that currently exists on my machine and then reinstalling and running docker all as admin.
Making sure virtualization is Enabled.
Making sure I had WSL2 on my machine.

OS: Window 11
Docker Version: 4.41.2 (191736)

UPDATE: There is currently an issue that stops Docker from starting if you’ve updated to WSL version 2.5.7. The work around found here fixes this issue:

I run DDfW 4.41.2 with WSL2 backend at the moment and update the WSL 2.5.7.0. Indeed, there is a warning when Docker Desktop is started, though the backend is running, and I can access it from a distribution with enabled docker WSL integration.

Could it be, that only new installations are affected?