WSL error 0xc03a0014 in a fresh machine preventing Docker to run

[xaberue]

Windows Version

Microsoft Windows [Version 10.0.26100.2605]

WSL Version

2.3.26.0

Are you using WSL 1 or WSL 2?

• WSL 2
• WSL 1

Kernel Version

5.15.167.4-1

Distro Version

Ubuntu

Other Software

Docker Desktop: 4.36.0 (175267)

Repro Steps

Currently, my machine was already running the entire environment without issues, but after formatting it, and reinstalling everything from scratch, it doesn't work.
Intel Virtualization is already activated

1. Install Windows 11 PRO
2. Run wsl --install in Administrator mode as it's documented here
3. Restart
4. Install Docker Desktop
5. Restart
6. Trying to run Docker Desktop prompts me the error

Expected Behavior

WSL properly running, allowing Docker Desktop to run as well

Actual Behavior

When running Docker, it throws me this error

deploying WSL2 distributions
ensuring main distro is deployed: deploying "docker-desktop": importing WSL distro "A virtual disk support provider for the specified file was not found. \r\nError code: Wsl/Service/RegisterDistro/0xc03a0014\r\n" output="docker-desktop": exit code: 4294967295: running WSL command wsl.exe C:\WINDOWS\System32\wsl.exe --import docker-desktop \AppData\Local\Docker\wsl\main C:\Program Files\Docker\Docker\resources\wsl\wsl-bootstrap.tar --version 2: A virtual disk support provider for the specified file was not found.
Error code: Wsl/Service/RegisterDistro/0xc03a0014
: exit status 0xffffffff
checking if isocache exists: CreateFile \wsl$\docker-desktop-data\isocache: The filename, directory name, or volume label syntax is incorrect.

And trying to check what I have running related to WSL, I can see that there's no distro installed, and I can't run any of them after installing it

Running wsl --install

Ubuntu is already installed.
Launching Ubuntu...
Installing, this may take a few minutes...
WslRegisterDistribution failed with error: 0xc03a0014
Error: 0xc03a0014 A virtual disk support provider for the specified file was not found.

Press any key to continue...

Note that trying other distributions both from store or command line have the same result

wsl --status

Default Version: 2

wsl --version

WSL version: 2.3.26.0
Kernel version: 5.15.167.4-1
WSLg version: 1.0.65
MSRDC version: 1.2.5620
Direct3D version: 1.611.1-81528511
DXCore version: 10.0.26100.1-240331-1435.ge-release
Windows version: 10.0.26100.2605

Diagnostic Logs

WslLogs-2025-01-04_01-10-56.zip

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View similar issues

Please view the issues below to see if they solve your problem, and if the issue describes your problem please consider closing this one and thumbs upping the other issue to help us prioritize it!

Closed similar issues:

• WslRegisterDistribution failed with error: 0x80370114 (#11856), similarity score: 0.79
• WslRegisterDistribution failed with error: 0xc03a0014 during Ubuntu installation (#10555), similarity score: 0.78
• WSL2 fails to run with error 0x80370102 (#8065), similarity score: 0.78
• WslRegisterDistribution failed with error: 0xc03a0014 (#10101), similarity score: 0.78
• WslRegisterDistribution failed with error: 0x80370102 (#9115), similarity score: 0.77

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Diagnostic information

Appx package is not installed
Detected user visible error: Wsl/InstallDistro/WSL_E_INSTALL_PROCESS_FAILED