The size limit of the Docker container has been reached and the container cannot be started.
PS C:\Users\lnest> docker system df
TYPE TOTAL ACTIVE SIZE RECLAIMABLE
Images 1 1 8.476GB 0B (0%)
Containers 1 0 257.8GB 257.8GB (100%)
Local Volumes 0 0 0B 0B
Build Cache 0 0 0B 0B
Since only one container and one image exist, and there is no unnecessary data, there is no free space in the container.
I was able to resize the ext4.vhdx with the help of this page.
However, it seems that eventually I need to login to docker and run resize2fs.
Since there is no capacity left, I cannot download alpine or even boot it.
Is there anything that can be done about this situation?