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I installed Docker Desktop on windows 11. Installation is complete but when I open the Docker Desktop app, it will show an error

There was a problem with WSL

An error occurred while running a WSL command. Please check your WSL configuration and try again.

running wslexec: An error occurred while running the command.

Wsl/Service/RegisterDistro/CreateVm/HCS/0x80070001:

e:\windows\system32\wsl.exe --import-in-place docker-desktop \appdata\local\docker\wsl\main\ext4.vhdx: exit status 0xffffffff (wslErrorCode: Wsl/Service/RegisterDistro/CreateVm/HCS/0x80070001, stderr: )

Additional details:
OS: Windows 11 Enterprise multi-session, Version 24H2
WSL is updated: v2.6.1.0
VM supports Nested Virtualization (I confirmed based from the azure docs)

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