Important Note: As @ Nachtalb said “I think it should be noted that
this removes all docker containers and data. (WLS: Unregisters the
distribution and deletes the root filesystem.)”
Thanks to https://github.com/docker/for-win/issues/7050, you should just simply run these two lines of commands inside powerShell:
First Exit docker hub desktop, then run these commands in PowerShell:
wsl --unregister docker-desktop
wsl --unregister docker-desktop-data