WSL distro terminated abruptly - read only file system error

Description

When running any Docker Desktop version (had older version, upgraded to newest version, then downgraded to 4.34.0 where WSL issues are supposedly fixed) I get the following error:

Docker Desktop - WSL Distro terminated abruptly A WSL distro that Docker Desktop relies on has exited unexpectedly. This usually happens as a result of an external entity terminating WSL (e.g. running wsl --shutdown). Restart Docker Desktop. If the issue persists, collect diagnostics and submit an issue.

error spotted in wslbootstrap log: "[2024-09-26T12:53:03.867074103Z][wsl-bootstrap][F] open /mnt/host/wsl/docker-desktop-data/isocache/entries/docker-wsl-cli.iso/93f732fcaa0e8f8f975620ddb750b7db7d1e1f94ec67d3a708b3eb017991c590: read-only file system"

I've done all possible computer updates, installed the latest version of WSL, restarting computer between each step, etc. with no luck.

Reproduce

Open Docker Desktop on version 4.34.0 or newest version.

Expected behavior

Docker Desktop can open as usual.

docker version

Client:
 Version:           27.2.0
 API version:       1.47
 Go version:        go1.21.13
 Git commit:        3ab4256
 Built:             Tue Aug 27 14:17:17 2024
 OS/Arch:           windows/amd64
 Context:           desktop-linux
error during connect: Get "http://%2F%2F.%2Fpipe%2FdockerDesktopLinuxEngine/v1.47/version": EOF

docker info

Client:
 Version:    27.2.0
 Context:    desktop-linux
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.16.2-desktop.1
    Path:     C:\Program Files\Docker\cli-plugins\docker-buildx.exe
  compose: Docker Compose (Docker Inc.)
    Version:  v2.29.2-desktop.2
    Path:     C:\Program Files\Docker\cli-plugins\docker-compose.exe
  debug: Get a shell into any image or container (Docker Inc.)
    Version:  0.0.34
    Path:     C:\Program Files\Docker\cli-plugins\docker-debug.exe
  desktop: Docker Desktop commands (Alpha) (Docker Inc.)
    Version:  v0.0.15
    Path:     C:\Program Files\Docker\cli-plugins\docker-desktop.exe
  dev: Docker Dev Environments (Docker Inc.)
    Version:  v0.1.2
    Path:     C:\Program Files\Docker\cli-plugins\docker-dev.exe
  extension: Manages Docker extensions (Docker Inc.)
    Version:  v0.2.25
    Path:     C:\Program Files\Docker\cli-plugins\docker-extension.exe
  feedback: Provide feedback, right in your terminal! (Docker Inc.)
    Version:  v1.0.5
    Path:     C:\Program Files\Docker\cli-plugins\docker-feedback.exe
  init: Creates Docker-related starter files for your project (Docker Inc.)
    Version:  v1.3.0
    Path:     C:\Program Files\Docker\cli-plugins\docker-init.exe
  sbom: View the packaged-based Software Bill Of Materials (SBOM) for an image (Anchore Inc.)
    Version:  0.6.0
    Path:     C:\Program Files\Docker\cli-plugins\docker-sbom.exe
  scout: Docker Scout (Docker Inc.)
    Version:  v1.13.0
    Path:     C:\Program Files\Docker\cli-plugins\docker-scout.exe

Server:
ERROR: error during connect: Get "http://%2F%2F.%2Fpipe%2FdockerDesktopLinuxEngine/v1.47/info": EOF
errors pretty printing info

Diagnostics ID

63392105-632C-4B24-9254-B0B4470917C9/20240926130515

Additional Info

No response

docker / for-win