After upgrading from Ubuntu 20.04 to 22.04, docker rootless can no longer connect to the internet and fails the basic ‘hello-world’ setup test. Initialized with ‘dockerd-rootless.sh’. However, using the regular daemon, ‘dockerd’, works fine with no issues. The error returned when attempting ‘docker run hello-world’:
docker: Error response from daemon: Get “https://registry-1.docker.io/v2/”: dial tcp: lookup registry-1.docker.io: no such host.
I setup another distro of 20.04 but that didn’t seem to work either. Not quite sure what has happened. I did notice all my images had ‘disappeared’, as they were under vfs storage and now docker has switched to overlay2. These were located in .local/share/docker, which is the rootless folder, so it definitely was working before!
I’ve reinstalled docker and rootless docker completely, set the variables in .bashrc, set the iptables to legacy for both v4 & v6, tried adding dns numbers to daemon.json, etc. I’m a linux novice, and I’m all out of ideas at this point! Hopefully one of you can shine some light on the problem 
Errors during initialization:
[2023-05-31T18:56:47.981398110+01:00] failed to initialize a tracing processor “otlp” error=“no OpenTelemetry endpoint: skip plugin”
[2023-05-31T18:56:47.979877010+01:00] cleanup working directory in namespace error=“open /home/dev1/.local/share/docker/containerd/daemon/io.containerd.runtime.v2.task/moby: no such file or directory” namespace=moby
Setup:
WSL version: 1.2.5.0
WSL2
5.15.90.1-microsoft-standard-WSL2
Ubuntu 22.04.2 LTS